Everhour captures task time clearly, but dependable client billing still starts with clean rates, rounding, and review.
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This calculation answers how much client-facing work is ready to bill before taxes, discounts, expenses, collections, or late-payment rules. The core output is the billable subtotal: approved billable hours multiplied by the applicable rate. For a U.S. invoice, that subtotal is normally stated in U.S. dollars because United States coins and currency, including Federal Reserve notes, are legal tender for debts, public charges, taxes, and dues.
Reliability comes from separating worked time, billable time, billed time, and collected money. Worked time includes everything recorded. Billable time is the portion chargeable under the contract or engagement terms. Billed time is what appears on the invoice after write-downs or exclusions. Collected money is what the client actually pays. Mixing those four figures makes utilization, realization, and revenue reporting inaccurate.
The basic formula is billable amount = rounded billable hours × billing rate. If different people, tasks, or phases use different rates, calculate each rate group separately and add the subtotals. Round each entry according to the agreed billing increment before totals are finalized, not after the invoice subtotal is already calculated.
For example, a client advisory project includes 17 approved analysis hours at $165 per hour and 23 approved implementation hours at $130 per hour. The analysis subtotal is $2,805, and the implementation subtotal is $2,990. The billable subtotal is $5,795 before taxes, discounts, write-downs, expenses, or payment timing. If the client agreement requires a write-down, apply it after the billable subtotal is clear.
The most common reliability problem is using a clean formula with dirty inputs. Reconstructed time, missing non-billable flags, unapproved edits, and outdated rates all produce a precise-looking number that is still wrong. A dependable total needs the billing rate that applied when the work was done, the correct project or matter, and a clear reason for any excluded time.
U.S. tax treatment needs its own jurisdiction-specific input when the service is taxable. The United States has no federal VAT/GST or national sales-tax rate for billed professional time. Sales tax is state and local, with different rules by service and location. For example, New Mexico gross receipts tax includes performing services in New Mexico, while Texas taxes taxable services at state and local rates.
A calculator is enough for a one-off check when the time entries are already approved, the rate is current, the billing increment is known, and the invoice does not require tax, expense, or write-down review. Use it to check an estimate, validate a spreadsheet total, or explain a single invoice line to a client before the final invoice is issued.
A managed workflow is the better fit when several people log time, rates change by project, invoices need approval, or billing data must flow into reports. Everhour Time Tracking supports timers and manual entries, tracks task and project hours, and feeds timesheets, reporting, budgeting, invoicing, and payroll review. Admin controls such as approvals, locked periods, reminders, and timer rules keep the calculation tied to reviewed source data.
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.
A reliable total uses approved billable time, the correct billing rate, the agreed rounding increment, and the right billing status for each task or project. It also keeps write-downs, expenses, taxes, and payments separate from the raw billable subtotal. That separation makes the invoice easier to review and makes realization or collection analysis possible later.
Use the method required by the client agreement, firm policy, or contract. Many billing workflows round each time entry to the agreed increment before adding the entries together. If you total raw minutes first and round only once at the end, the invoice can differ from a client's expected line-item review.
The United States has no federal VAT/GST or national sales-tax rate for billed professional time. Tax treatment is state and local, and some services are taxable in specific jurisdictions. A reliable calculator should keep the billable subtotal separate, then apply the correct jurisdiction-specific tax input only when the service is taxable.
The billable amount is approved billable time multiplied by the applicable rate. The invoice amount can be different after write-downs, discounts, taxes, expenses, retainers, or fixed-fee adjustments. Keep both numbers visible so you can see whether revenue changed because of time, pricing, tax treatment, or a billing decision.
Rate dates matter because older work may need to stay priced at the rate that applied when the work was performed. If a person's rate changes from $125 to $145, applying the new rate to old approved entries overstates the client charge. Reliable billing preserves the rate history behind each subtotal.
Everhour Time Tracking captures task and project hours through live timers or manual entries, including tracking inside supported project tools such as Asana, ClickUp, GitHub, Jira, Monday, Notion, Trello, and others. Admins can use approvals, locked periods, reminders, and timer rules before hours move into billing or payroll review.
Everhour Billing & Invoicing turns tracked billable time and expenses into invoices, calculates amounts from rates and billable time, and excludes non-billable work. Invoiced time is marked as invoiced so the same approved hours do not appear again on a future invoice.
Track approved time, lock reviewed periods, and move clean billable hours into invoices. Everhour gives teams a dependable path from captured work to client-ready billing.
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