Finance

Billable Hours Calculator

Track billable hours, calculate utilization rate, and estimate revenue for consulting and freelance work.

Formulas:
Billable Hours = Total Hours − Non-Billable
Utilization Rate = Billable / Total × 100
Revenue = Billable Hours × Hourly Rate

Utilization Rate Guide

Utilization rate measures what percentage of your working time is directly billable to clients. It's the single most important metric for service businesses and freelancers.

RateLevelTypical For
85%+ExcellentSenior consultants, specialized freelancers
70-85%GoodMost consultants, agencies
60-70%AverageNew freelancers, high-admin roles
Below 60%LowNeed to reduce admin time or increase clients

Increasing Utilization

  • Batch admin tasks to specific days/times
  • Automate invoicing and time tracking
  • Set minimum engagement sizes
  • Use templates and standard processes