Everhour Reporting turns approved time into grouped billing reports, while the calculation starts with hours, rates, and rounding.
Track billable vs. non-billable time and see your real utilization rate and revenue potential in seconds.
Working hours in the period
Admin, meetings, internal work
Industry average is 75–80%
The calculator gives you the number — Everhour takes it from there.
One click and you're timing. Start a timer, add an entry, edit the details. This is exactly how it feels in Everhour.
Set a budget, assign rates, and get alerted before you're over.
Measurement
Track your budget through time or costs
Every report you need — configured your way, always up to date.
Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.
This calculation answers a practical billing question: how much client-approved work is chargeable at the agreed rate. The starting point is approved billable time, not total hours worked. Internal meetings, proposal work, training, and admin time can remain useful for utilization analysis, but they do not belong in the invoice total unless the client agreement treats them as billable.
The result is the pre-tax billable amount in U.S. dollars for one project, matter, client, or invoice period. For U.S. billing, there is no federal VAT/GST or national sales-tax rate for professional time. State and local tax treatment controls whether a jurisdiction-specific tax input belongs after the billable-hours subtotal.
Start with entries that passed review and match the client's billing terms. If the agreement uses 6-minute increments, round each entry to 0.1 hour before multiplying by the rate. If it uses 15-minute increments, round to 0.25 hour. Apply the rounding method consistently at the entry level or invoice level according to the client agreement, because the two methods can produce different totals.
Separate billable hours from billed hours. Billable hours are the approved time entries eligible for charging. Billed hours are the hours that actually reach the invoice after write-downs, discounts, or courtesy adjustments. A 2-hour write-down on 40 approved billable hours means 38 billed hours. That difference affects realization, even when the underlying time records are accurate.
The core formula is billable hours multiplied by the applicable hourly rate. When one invoice uses multiple rates, calculate each rate group separately, then add the subtotals. For example, a client implementation project includes 24 approved configuration hours at $160 per hour and 16 approved training hours at $120 per hour. The billable subtotal is $3,840 plus $1,920, or $5,760.
The same structure works for project rates, member rates, and task rates. Keep each rate on its own line so the invoice matches the contract and the review trail. After the subtotal, apply agreed discounts, taxable service rules, and payment terms separately. For federal-agency vendor invoices, Prompt Payment timing generally uses the contract date, accepted discount terms, an accelerated-payment rule, or 30 calendar days after receipt of a proper invoice.
A one-off calculation is enough when you have a short list of approved entries, one or two rates, and no disputed rounding. It is also enough for checking a draft invoice before sending it. The calculation stops being enough when entries need approval, rates differ by person or task, non-billable work must stay visible, or billing reports need to match the invoice later.
That is where a managed workflow matters. Everhour Reporting can group logged time by project, task, member, client, billable status, and date range, then export the result for billing review. The durable record matters because the next question is rarely just the subtotal; it is which hours were approved, written down, invoiced, uninvoiced, or excluded from client billing.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
High Performer
G2
Summer 2026
Best Ease Of Use
Capterra
Summer 2026
Rated in the top time trackers across G2, Capterra, and TrustRadius — with consistent praise for ease of use, integrations, and support.
Billable time is work time that the client agreement allows you to charge. It usually includes approved project, matter, implementation, consulting, development, or review work tied to the client's scope. It excludes internal administration, sales work, training, and rework unless the contract or engagement letter says those hours are chargeable.
Use approved billable hours for the invoice calculation. Total worked hours belong in utilization and profitability analysis because they show the real labor spent. If 46 hours were worked but only 40 hours were approved for billing, the billable-hours calculation uses 40 hours. The 6-hour gap belongs in a realization or write-down review.
Round according to the client agreement or firm policy. A 6-minute increment converts time to tenths of an hour, while a 15-minute increment converts time to quarters of an hour. Apply the rule consistently and keep the unrounded source entry available for audit. Rounding each entry can produce a different invoice total than rounding the final daily or project total.
U.S. billable-hour totals are normally calculated in U.S. dollars before tax. The United States has no federal VAT/GST or national sales-tax rate. If the service is taxable, add the correct state and local tax input after the billable subtotal. Rates and taxable service rules vary by jurisdiction, so do not treat tax as a universal hourly-rate component.
The common mistake is mixing worked time, billable time, and billed time in one number. Worked time measures labor. Billable time measures approved chargeable work. Billed time measures what reaches the invoice after write-downs or discounts. Keeping those three figures separate prevents inflated invoices and gives a cleaner view of utilization, realization, and collection.
Everhour Reporting turns logged time, budgets, costs, and project data into customizable reports with 45+ columns, grouping, filters, date ranges, and exports. A billing reviewer can group entries by client, project, member, task, billable time, non-billable time, billable amount, invoice status, and related metadata before approving the invoice basis.
Everhour lets admins set project billing status, mark specific tasks as non-billable inside billable projects, and report billable time separately from non-billable time. That keeps client-chargeable work visible without deleting internal work from operational reports.
Track approved hours, group billing data, and export invoice-ready totals from Everhour Reporting so manual billable-hours math becomes a reviewable billing workflow.
14-day free trial · No credit card · Cancel anytime
