Billable Hours Calculator
(Utilization Rate and Revenue per Hour Worked)
Enter the hours you worked, the hours you can invoice and your billing rate to see your utilization. Add a time entry to round it and get the amount to bill.
Step 1 — Time Tracked This Period
Every hour on the clock — client work, admin, meetings, business development
Only the hours you can actually invoice a client for
Step 2 — Bill a Time Entry (Optional)
Round up to
Calculated Results
Enter total hours worked and billable hours to calculate utilization.
This billable hours calculator compares the hours you invoice with the hours you work. Enter both for the same period and add your billing rate. It returns your utilization rate, the non-billable hours, the revenue for the period and what that revenue comes to per hour worked. It can also take one time entry, round it up to your billing increment and show the amount to bill.
How Utilization Rate Is Calculated
In a 40-hour week with 28 billable hours, utilization is 28 ÷ 40 = 70% and 12 hours are non-billable. At $100 an hour the revenue is $2,800. Spread over all 40 hours, that is $70 per hour worked.
| Utilization | Billable hours in a 40-hour week | Revenue at $100/hr | Per hour worked |
|---|---|---|---|
| 50% | 20 | $2,000 | $50 |
| 60% | 24 | $2,400 | $60 |
| 70% | 28 | $2,800 | $70 |
| 80% | 32 | $3,200 | $80 |
| 90% | 36 | $3,600 | $90 |
The blended rate is always the billing rate multiplied by the utilization rate.
Billable and Non-Billable Time
- Billable: work done for a client that appears on an invoice. What counts depends on your agreement with the client. Some agreements cover calls, travel or revisions and some do not.
- Non-billable: sales calls, quotes and proposals, invoicing and bookkeeping, internal meetings, training, and client work you chose not to charge for.
Total hours worked should include both. If you leave non-billable time out of the total, the utilization rate will look higher than it is.
Billing a Time Entry With Rounding
Many agreements bill time in fixed increments. The calculator rounds a time entry up to the next increment and multiplies by your rate.
Take an entry of 1 hour 14 minutes, which is 74 minutes, at $100 an hour.
| Increment | Billed time | Decimal hours | Amount at $100/hr |
|---|---|---|---|
| No rounding | 74 min | 1.2333 | $123.33 |
| 6 minutes | 78 min | 1.3 | $130.00 |
| 15 minutes | 75 min | 1.25 | $125.00 |
| 30 minutes | 90 min | 1.5 | $150.00 |
An entry that already sits on an increment is not changed. Use the increment written in your client agreement. The calculator always rounds up, so if your agreement rounds to the nearest increment, the result can differ.
Converting Minutes to Decimal Hours
Time is usually billed in decimal hours. Divide minutes by 60 to convert.
| Minutes | Decimal hours | Charge at $100/hr |
|---|---|---|
| 6 | 0.1 | $10.00 |
| 15 | 0.25 | $25.00 |
| 30 | 0.5 | $50.00 |
| 45 | 0.75 | $75.00 |
| 90 | 1.5 | $150.00 |
If you record time in tenths of an hour, each unit is 6 minutes.
Hours Needed for a Revenue Target
A $10,000 month at $100 an hour needs 100 billable hours. At 70% utilization that is 100 ÷ 0.70 = about 143 hours of work. At 60% it is about 167 hours.
There are two ways to earn more from the same working hours: bill a larger share of them, or raise the rate. The Freelance Hourly Rate Calculator works out the rate you need from an income goal and your billable hours.
How to Use the Billable Hours Calculator
- Enter total hours worked: Type every hour you worked in the period, billed or not.
- Enter billable hours: Type the hours from that total that you can invoice a client for.
- Enter your billing rate: Type what you charge per billable hour.
- Bill a time entry: Optional. Type the hours and minutes of one piece of work and choose a rounding increment. The calculator shows the billed time and the amount.
- Read the result: The calculator shows the utilization rate, non-billable hours, revenue and earnings per hour worked.
Frequently Asked Questions
How do I calculate billable utilization?
Divide billable hours by total hours worked and multiply by 100. 28 billable hours out of 40 worked is 28 ÷ 40 × 100 = 70%.
What is the difference between billable and non-billable hours?
Billable hours are time spent on client work that the client is charged for. Non-billable hours are time the business needs but no client pays for, such as sales, quoting, invoicing, internal meetings and training.
What is the blended rate per hour worked?
It is revenue divided by all hours worked, billed or not. At $100 an hour with 28 billable hours out of 40, revenue is $2,800 and the blended rate is $70 an hour. It equals the billing rate multiplied by the utilization rate.
How do I round billable time to 6 minutes?
Divide the minutes by 6, round up to the next whole number and multiply by 6. 74 minutes becomes 78 minutes, which is 1.3 hours. At $100 an hour that is $130.
How do I convert minutes to billable hours?
Divide the minutes by 60. 15 minutes is 0.25 hour, 30 minutes is 0.5 and 45 minutes is 0.75. If you record time in tenths of an hour, each tenth is 6 minutes.
How many billable hours do I need to reach a revenue target?
Divide the target by your billing rate. $10,000 at $100 an hour is 100 billable hours. Divide that by your utilization rate to get total working hours: at 70% it is about 143 hours.
Can utilization be 100%?
Only if every hour worked is billed. Any time spent on sales, admin or training brings it below 100%. The calculator does not accept more billable hours than total hours.
Formulas and worked examples checked in October 2026.