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Billable Hours Calculator

Measure your utilization, billable revenue and how far you are from your target.

Result

Billable hours

28

Billable revenue

$2,100.00

Hours short of target

2

Revenue gap to target

$150.00

Utilization

70%

Embed this calculator on your site

Copy this code and paste it into your page's HTML. The calculator is free to use and resizes itself to fit.

How it's calculated

Utilization = billable hours ÷ total hours. Hours short of target = total hours × target utilization − billable hours; multiply by your rate for the revenue gap.

This billable hours calculator measures how much of your working time you can invoice. Enter total hours, non-billable hours, your rate and a target utilization. You get billable hours, utilization, billable revenue and how far you are from the target.

The formula

billable hours  = max(0, total hours - non-billable hours)
utilization %   = billable hours / total hours x 100
target hours    = total hours x target utilization %
hours short     = max(0, target hours - billable hours)
billable revenue = billable hours x hourly rate
revenue gap     = hours short x hourly rate

Worked example

Inputs: total hours 40, non-billable 12, rate $75, target utilization 75%.

  • Billable hours: 28
  • Utilization: 70%
  • Billable revenue: $2,100.00
  • Target hours: 30
  • Hours short of target: 2
  • Revenue gap: $150.00

How to read the result

Utilization shows where your week goes. A gap means you have more capacity to sell or less admin to cut.

  • Run the calculator for a week and for a month. Weekly numbers swing more.
  • Low utilization with a full diary often points to unpaid work, such as long revisions.
  • Raising the rate can close a revenue gap faster than adding hours.
  • Do not set the target at 100 percent. Every business needs time for admin and sales.

Pair this with a timesheet. Without tracked time, the inputs are guesses.

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Frequently asked questions

How do I calculate billable utilization?
Subtract non-billable hours from total hours to get billable hours. Divide billable hours by total hours and multiply by 100. The result is your utilization rate.
What is a good billable utilization rate?
It depends on your role and business. Owners and solo freelancers bill a smaller share than staff, because they also sell and run the business. Set a target from your own costs and compare against it.
What counts as non-billable time?
Time you cannot charge to a client. Examples are admin, marketing, proposals, training and unpaid revisions. Track it, because it shapes the rate you need to charge.
What does hours short of target mean?
It is the number of extra billable hours you need to reach your target utilization for the same total hours. The calculator shows zero if you already meet or beat the target.
Can utilization go above 100 percent?
Not in this calculator. Billable hours cannot exceed total hours, because non-billable time is subtracted from the total and the result never goes below zero.