Everhour embeds time tracking in project tools, so revenue analysis starts with cleaner approved hours and billing context.
Track billable vs. non-billable time and see your real utilization rate and revenue potential in seconds.
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Revenue per hour answers a direct operating question: how much revenue did each approved hour produce for a project, matter, client, or team? The result is useful when the sticker hourly rate does not match the final invoice. A $175 rate can turn into a lower effective result after discounts, non-billable task exclusions, fixed-fee limits, or write-downs.
Use approved billable hours as the hour base, not every hour worked. Internal administration, sales calls, rework you choose not to bill, and training time belong in utilization analysis, not in this specific revenue-per-hour figure. If the amount is for a U.S. client, keep the revenue amount in USD and handle any taxable service treatment with the relevant state or local tax input, not a single federal VAT or GST rate.
The clean formula is revenue per hour = billable revenue / approved billable hours. Billable revenue should usually mean the amount earned from the work before pass-through taxes and after client-facing write-downs. If a project has $9,500 in standard time value but the approved invoice is $8,740 after a courtesy adjustment, use $8,740 when measuring what the hour actually produced.
Do not mix revenue recognition rules inside one comparison. For cash analysis, use collected revenue. For billing performance, use invoiced revenue. For production efficiency, use approved billable value before collections. Each version is valid, but each answers a different question. Mixing collected revenue for one client with invoiced revenue for another makes the hourly result look precise while measuring two different events.
For a mixed-rate project, calculate each line first, add the revenue, then divide by total approved billable hours. For example, a client implementation includes 18 approved architecture hours at $170 per hour and 30 approved configuration hours at $126 per hour. The revenue total is $3,060 plus $3,780, or $6,840. Divide $6,840 by 48 approved billable hours to get $142.50 per hour.
Rounding belongs before the invoice amount is finalized, not after the hourly revenue result is computed. If your billing policy rounds to 0.1 hour, convert each time entry to that increment before multiplying by the rate. If your policy rounds to 15 minutes, use quarter-hour increments. A small rounding change across many entries can move the invoice total and therefore the final revenue-per-hour figure.
The most common mistake is dividing revenue by all tracked hours instead of the hour base you are trying to measure. Revenue divided by approved billable hours gives an effective billing result. Revenue divided by all worked hours gives a broader productivity result. Both are useful, but they should not be labeled the same way on a partner report, agency dashboard, or monthly client review.
Write-downs create another denominator problem. If 55 hours were worked, 48 hours were approved as billable, and the invoice was reduced to $6,840, dividing by 55 gives $124.36 per worked hour. Dividing by 48 gives $142.50 per approved billable hour. The difference shows whether you are evaluating billing performance or the total cost of delivery time.
A one-off calculation is enough when you have one invoice, one project, and a confirmed set of approved billable hours. It is also enough for a quick pricing check before quoting similar work. Keep the source numbers beside the result: approved hours, invoice amount, excluded non-billable time, write-downs, and whether taxes or expenses were excluded.
A managed workflow becomes necessary when several people log time, rates vary by role or task, or client invoices need approval before accounting handoff. Everhour can place tracking controls inside supported project tools, sync project and task metadata, show timesheets and budgets in the work context, and connect billing data to accounting workflows without rebuilding the hour base manually.
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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Use revenue per hour = billable revenue / approved billable hours. The revenue figure should match the question you are answering: invoiced revenue for billing performance, collected revenue for cash yield, or approved billable value for production analysis. Keep taxes, expenses, and write-downs consistent across every project you compare.
Do not assume one national U.S. tax rule. The United States has no federal VAT or GST, and sales tax treatment is state and local. If a service is taxable in the relevant jurisdiction, add that tax as a separate input or line item instead of blending it into service revenue.
The posted rate is the price before real billing events. Revenue per hour changes when time is written down, fixed-fee work caps the invoice, some tasks are marked non-billable, different people bill at different rates, or the client pays only part of the invoice. The result shows the realized hourly value, not the rate card.
Use the hours tied to the revenue number. For approved billable revenue, divide by approved billable hours. For collected revenue across the whole delivery effort, divide by all worked hours if you want a productivity view. Do not include internal non-billable time in a billable-hour metric unless the report explicitly measures total delivery yield.
A write-down lowers the revenue numerator while the approved or worked hours usually stay the same. If 48 approved billable hours produce $6,840 after a discount, the result is $142.50 per approved billable hour. If the undiscounted value was higher, the gap belongs in realization analysis.
Everhour embeds tracking controls inside supported tools such as Asana, ClickUp, GitHub, Jira, Monday, Notion, Trello, and others, then syncs project and task metadata into Everhour. That keeps approved hours, billing context, timesheets, and budgets connected to the work records where the time was captured.
Track approved hours inside the tools where work happens, then carry billing context through reports and accounting handoff. Everhour gives revenue-per-hour analysis cleaner inputs.
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