This hourly invoice calculator turns hours worked into an invoice total. It prices regular hours, adds overtime at your multiplier, applies tax to the labor and then adds reimbursable expenses. You see regular pay, overtime, subtotal, tax and the final total.
The formula
regular pay = hours worked x hourly rate
overtime pay = overtime hours x hourly rate x multiplier
subtotal = regular pay + overtime pay
tax = subtotal x tax rate
total = subtotal + tax + expenses
Expenses are passed through at cost and are not taxed.
Worked example
Inputs: 40 regular hours, 6 overtime hours, rate $75, multiplier 1.5, tax 10%, expenses $120.
- Regular hours: $3,000.00
- Overtime: $675.00
- Subtotal: $3,675.00
- Tax: $367.50
- Total: $4,162.50
How to read the result
The subtotal is the value of your labor. Tax applies to it only. The expenses add to the total after tax.
- Overtime uses the same base rate. Only the multiplier changes.
- Keep receipts for each expense. Clients often ask for proof before they repay it.
- Do not add a markup to expenses here. If you want one, add it to the expense amount first.
- The multiplier cannot go below 1, because the field starts at 1.
Tax on services differs by country. Check with a tax authority or an accountant whether your hours are taxable.
Related tools
- Create the document: Invoice generator and Timesheet generator
- Read more: Timesheets for billing and How to invoice a client
- Other calculators: Billable hours calculator and Freelance rate calculator
Frequently asked questions
- How do I calculate an invoice from hours worked?
- Multiply the hours by your hourly rate. Add overtime pay if you have overtime hours. Add tax if it applies, then add any expenses you want repaid.
- How is overtime calculated on an invoice?
- Overtime pay equals overtime hours times the hourly rate times the multiplier. Time-and-a-half uses 1.5 and double time uses 2. Enter the overtime hours separately from the regular hours.
- Are expenses taxed in this calculator?
- No. Expenses are added after tax, at cost, as reimbursed pass-through costs. If tax applies to them where you work, check with an accountant and adjust your invoice.
- Should I charge overtime as a freelancer?
- Only if your contract says so. Overtime rates are common for employees and for some contract roles. Agree the multiplier with the client before you start work.
- How do I show hours on the invoice?
- List the hours and the rate on separate lines for regular and overtime work. Add dates or a short task description. A timesheet attached to the invoice helps the client approve it faster.