Billable-hour totals need rates, rounding, and tax inputs; Everhour keeps billing rates tied to tracked work.
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A billable-hours total answers a direct billing question: how much client-facing time should be charged after you apply the agreed rate, billing increment, and any write-down. For U.S. work, the amount is normally denominated in U.S. dollars. The base total is not the same as collected revenue, because collection depends on what the client ultimately pays.
For a free calculation, keep the inputs tight: billable hours, rate, billing increment, non-billable exclusions, write-downs, and any jurisdiction-specific tax field when the service is taxable. The United States has no federal VAT/GST or national sales-tax rate for professional time. Sales tax treatment is state and local, and some services are not taxed.
A free billable-hours check is useful when you need one project total, one client estimate, or a quick invoice review without installing software. It gives a fast answer when the rate terms are already known and the time entries are already approved. The mistake to avoid is treating a free total as a full billing record.
Before you rely on the number, confirm whether the hours are worked, billable, billed, or collected. Billable hours are eligible for invoicing. Billed hours are actually placed on an invoice after rounding and write-downs. Collected revenue is the cash received. Those four labels prevent a clean free calculation from turning into an overstated revenue figure.
The core formula is billable hours × billable rate, after rounding each entry to the billing increment required by the client agreement. Common increments include 0.1 hour, or six minutes, and 0.25 hour, or 15 minutes. If the agreement requires entry-level rounding, round each time entry first; if it allows total-level rounding, round the project total at the end.
For example, a client research project has 29 approved analyst hours at $140 per hour and 13 approved review hours at $95 per hour. The analyst line equals $4,060, and the review line equals $1,235. The pre-tax billable total is $5,295 before any write-down, expense, discount, or state and local tax input.
A one-off calculation is enough for a draft quote, a single invoice check, or a quick comparison between two rate scenarios. It is not enough when several people use different rates, rates changed during the project, or a client expects a clear audit trail from task to invoice. Those cases need more than arithmetic.
A managed workflow becomes the better answer when you need dated rates, per-person defaults, per-project overrides, approvals, reporting, or invoicing handoff. Everhour supports separate cost and billable rates, project, member, and custom task rates, and dated rate changes so older reports keep their original calculations.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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You need approved billable hours, the billable rate, the billing increment, and any write-down or discount. For U.S. invoices, add a jurisdiction-specific tax input only when the service is taxable. Do not add a federal VAT/GST field, because the United States has no federal VAT/GST or national sales-tax rate.
It is enough for a quick estimate, a draft invoice check, or a single project with one known rate and clean approved hours. It is not enough for recurring billing, dated rate changes, multiple billable roles, approval trails, or invoices that must reconcile back to task-level records.
Rounding changes the total when time entries are converted to the client's required billing unit. A 14-minute entry becomes 0.3 hour under six-minute rounding, but it becomes 0.25 hour under 15-minute rounding if rounded to the nearest quarter hour. Apply the client's agreed increment consistently before calculating the billed amount.
The labor total should be calculated first, then tax should be handled using the applicable state and local rule when the service is taxable. U.S. sales tax is not a single national rate. For example, New Mexico gross receipts tax can apply to services and varies by business location from 5.125% to 8.6875%.
Billable value is the amount produced by eligible hours multiplied by the billing rate, after rounding and write-downs. Collected revenue is the amount actually paid by the client. A project can have a correct billable value and still produce lower collected revenue if the invoice is discounted, disputed, partially paid, or unpaid.
Everhour separates cost and billable rates, supports per-person default rates, and allows per-project overrides when work is priced differently for a client. Rate changes can be dated, so older reports keep their original calculations while new work uses the updated rate.
Everhour Billing & Invoicing converts tracked billable time and expenses into invoices, calculates invoice amounts from rates and billable entries, and excludes non-billable work. Invoices can be exported to QuickBooks Online, Xero, or FreshBooks as drafts for accounting follow-up.
Use Everhour to keep billable rates, dated changes, and project overrides connected to approved time entries, so manual billable-hour checks become reliable client billing.
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