Everhour embeds time tracking in work tools, while billable-hour totals still depend on clean rates, rounding, and approval rules.
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%
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Tracking billable hours answers a practical billing question: how much approved client work should be charged at the agreed rate. The result is not every hour worked. Internal meetings, rework, admin time, and non-billable tasks stay outside the billable total unless the contract says otherwise. For U.S. invoices, the base amount is normally stated in USD before any jurisdiction-specific tax input.
The calculation also helps you find where value is lost. Billable hours show approved chargeable time. Billed hours show what you actually invoice after write-downs or caps. Collected amounts show what the client pays. Keeping those separate prevents one common mistake: treating a busy week as billable revenue before the entries are approved, priced, rounded, and invoiced.
The base formula is billable hours multiplied by the applicable billing rate. If a project uses more than one rate, calculate each rate group separately, then add the subtotals. For example, a product launch project has 28 approved consulting hours at $165 per hour and 16 approved documentation hours at $95 per hour. The consulting subtotal is $4,620, the documentation subtotal is $1,520, and the pre-tax billable total is $6,140.
Rounding belongs before the invoice total, not after the money is calculated. If the engagement bills in 0.1-hour increments, 6 minutes equals 0.1 hour. If it bills in 15-minute increments, 8 minutes usually rounds according to the written policy or client agreement. U.S. sales tax is not a single national rate, and the United States has no federal VAT/GST, so add a jurisdiction-specific tax input only when the service is taxable.
The cleanest billable-hour total comes from entries created while the work happens. Reconstructed time usually misses small task switches, review sessions, and non-billable interruptions. A timer-based record also makes write-downs easier to defend because you can see the original time, the approved billable time, and the billed adjustment instead of relying on a single memory-based number.
Use four metrics for review. Utilization compares billable time with available working time. Realization compares billed value with billable value. Collection compares paid value with invoiced value. Effective billing rate divides billed value by the hours worked or approved, depending on the question. These metrics explain why a project with many tracked hours can still produce a lower final rate.
A one-off calculation is enough when you have a short list of approved entries, one or two rates, and no client-specific billing rules. It is also enough for checking an estimate before sending it for review. At that point, the calculator gives you a fast pre-tax subtotal and exposes simple mistakes, such as applying one rate to every contributor.
A managed workflow is better when entries arrive from multiple people, projects, or tools. You need time capture, billable and non-billable flags, approvals, reporting, and an invoicing handoff. Everhour fits that workflow by placing tracking controls inside supported project tools and syncing project and task metadata into one reporting layer before billing review.
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 billable hour is approved client work that the agreement allows you to charge. It excludes internal admin time, unpaid rework, sales activity, and tasks marked non-billable. If the client agreement sets matter codes, project phases, caps, or required descriptions, the hour is not invoice-ready until those conditions are met.
Group time by the rate that applies to each entry, calculate each subtotal, then add the subtotals. Do not average the rates first unless the contract uses a stated blended rate. Separate rate groups protect the total when partners, associates, consultants, designers, or task categories are priced differently.
Rounding changes the total whenever raw time does not match the billing increment. A 7-minute entry equals 0.12 hour as exact time, but it may become 0.1 hour under 6-minute billing or 0.25 hour under 15-minute billing. Apply the written billing increment consistently before multiplying by the rate.
The base billable-hours amount is the pre-tax service subtotal. The United States has no federal VAT/GST and no national sales-tax rate for professional time. Sales tax treatment is state and local, and some services are not taxed, so use the jurisdiction-specific tax input only when the billed service is taxable.
Tracked time is the raw record. Approved billable time is the portion accepted for client billing after review. An approval step catches missing descriptions, non-billable work, excessive rounding, wrong rates, and entries outside the contract scope before the amount reaches the invoice.
Everhour adds tracking controls inside supported tools such as Asana, ClickUp, GitHub, Jira, Monday, Notion, Trello, and others. Project and task metadata sync into Everhour, so billable entries can stay tied to the same work structure used by the team.
Everhour reports can include billable time, non-billable time, billable amount, and cost columns by member or task. Admins can review which entries should be billed, excluded, or adjusted before client invoicing.
Track approved hours where work happens, keep billable status visible, and move clean totals into review. Everhour connects embedded tracking with billing-ready project data.
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