Billable Hours Calculator
Not every hour you work is billable. Meetings, admin, and business development eat into chargeable time, and the share that ends up on invoices is your utilization rate. This calculator takes the hours you worked, the percentage that is billable, and your hourly rate, then returns your billable hours, non-billable hours, utilization rate, and gross billable revenue for the period. Use it to size a week, a month, or a project.
Billable hours formula
billable hours = hours worked * (billable share / 100)
non-billable hours = hours worked - billable hours
utilization rate = billable hours / hours worked
revenue = billable hours * hourly rate
Billable hours are the chargeable portion of your worked time. Utilization is the same ratio expressed as a percentage of the day or period. Revenue is the gross amount you could invoice before tax and expenses.
Worked example
For 40 hours worked, a 70% billable share, and a 150 dollar rate: billable hours = 40 * 0.70 = 28. Non-billable hours = 40 - 28 = 12. Utilization = 28 / 40 = 70.00%. Revenue = 28 * 150 = 4,200.00 dollars for the week.
Billable hours: frequently asked questions
What is a billable hour?
A billable hour is time spent on work you can charge a client for, as opposed to internal or administrative time. Billable hours are the basis of invoicing for freelancers, consultants, lawyers, and agencies. The ratio of billable hours to total hours worked is called the utilization rate.
What is a good utilization rate?
Utilization is billable hours divided by total hours worked. It varies widely by profession and role: client-facing consultants often target 60% to 80%, while people with significant management or business-development duties run lower. There is no universal target, so the billable share here is an editable input.
How is billable revenue calculated?
Multiply your billable hours by your hourly rate. Billable hours are total hours worked times the billable percentage. For example, 40 hours worked at a 70% billable share is 28 billable hours; at a 150 dollar rate that is 4,200 dollars of revenue for the period.
Does this include taxes or expenses?
No. The revenue figure is gross billings before tax, business expenses, software, or non-billable overhead. To find take-home pay you would subtract those costs. This tool focuses on converting worked time and rate into headline billable revenue.
Sources and method
- Utilization and billable revenue are direct arithmetic on the hours, share, and rate you enter, computed exactly by this tool.
- Typical billable shares vary widely by profession, so the billable percentage is an editable input rather than a fixed claim.
Reviewed by the CalculatorHub team, edited by James Graham, 19 June 2026. See our methodology.