Billable Hours Calculator

The Billable Hours Calculator turns your time into clear numbers so you can see the money your work brings in and how much of your effort is actually paid. It is built for consultants, agencies, lawyers, tradespeople and anyone who tracks time against client work. You enter the total hours you worked in a period, the hours that were genuinely billable, and your hourly rate. The tool multiplies billable hours by the rate to give billable revenue, then divides billable hours by hours worked to give your utilisation percentage, and shows the non-billable hours left over. Utilisation is the heartbeat of any time based business. Hours worked include everything you did, while billable hours are only the slice a client will pay for, so the gap shows time spent on admin, sales, internal work and downtime. Watching that gap helps you spot where the day disappears and whether your rate and workload add up. This view is useful weekly to stay on track and monthly to plan capacity and pricing. Good practice is to log time as you go rather than reconstructing it later, because memory inflates billable hours and hides the real picture. Aim for a sustainable utilisation target rather than the highest possible number, since chasing 100 percent burns people out and leaves no room for growth work. Review your rate alongside utilisation, because a healthy rate at moderate utilisation often beats a low rate run flat out. Use the result to set goals, quote with confidence and protect time for the work that wins future clients.

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$11,400
Billable revenue
Utilisation75.0%
Non-billable hours40

Revenue = billable hours x rate. Utilisation = billable / worked. Estimate only, not financial or tax advice.

How it works

The calculator multiplies your billable hours by your hourly rate to get billable revenue. It divides billable hours by hours worked to get utilisation as a percentage. Non-billable hours are hours worked minus billable hours.

Worked example

With 160 hours worked, 120 billable and a $95 rate, billable revenue is 120 times 95, which is $11,400. Utilisation is 120 divided by 160, which is 75.0 percent. That leaves 40 non-billable hours.

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Frequently asked questions

What is the difference between hours worked and billable hours?

Hours worked is all the time you put in, including admin, sales and internal tasks. Billable hours are only the portion a client pays for. The difference is your non-billable time.

How is billable revenue calculated?

Billable revenue is simply billable hours multiplied by your hourly rate. It does not include non-billable time, since that is not charged. It is the gross figure before tax and costs.

What is a healthy utilisation rate?

Many service businesses aim for roughly 60 to 80 percent utilisation. Higher leaves no room for sales, learning or rest, while much lower may signal a pipeline problem. The right target depends on your role and model.