Billable hours calculator
Nobody bills every hour they work. Utilisation is the fraction that reaches an invoice, and it decides whether a rate is enough.
%
Annual revenue
101 660.00
- Billable hours a year
- 1196
- Billable hours a week
- 26.00
- Effective rate per hour worked
- 55.25
- Rate needed for the income target
- 75.25
- Billable hours the target needs
- 1059
- Utilisation the target needs
- 57.54 %
Show the working
- Working weeks per year = 46
- Hours worked per week = 40
- Billable share = 65
- Hourly rate = 85
- Income target = 90 000
- total_hours = 46 * 40 = 1840
- Billable hours a year = 1840 * 65/100 = 1196
- Annual revenue = 1196 * 85 = 101 660
- Effective rate per hour worked = 1840 > 0 ? 101 660 / 1840 : 0 = 55.25
- Rate needed for the income target = 1196 > 0 ? 90 000 / 1196 : 0 = 75.2508
- Billable hours the target needs = 85 > 0 ? 90 000 / 85 : 0 = 1058.82
- Utilisation the target needs = 1840 > 0 ? 1058.82 / 1840 * 100 : 0 = 57.5448
- Billable hours a week = 46 > 0 ? 1196 / 46 : 0 = 26
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- billable hours = weeks x hours per week x utilisation
- revenue = billable hours x rate
Sustained utilisation above about 75% leaves no time for sales, admin or learning, and is usually a sign of trouble ahead.