# Billable Hours Calculator

URL: https://speedycalculator.com/calculators/finance/billable-hours/
Last updated: 2026-10-25

> The billable hours calculator works out the value of your billable time at your hourly rate, your utilisation rate and the hours you would need to bill to reach a revenue target.

## Inputs

- Billable rate (per hour)
- Billable time (hours)
- Total hours worked
- Revenue target for the period

## Results

- Billable value
- Utilisation rate
- Billable hours needed for the target
- Effective rate per hour worked

## Formula

```
Billable value = billable hours × billable rate
Utilisation = billable hours ÷ total hours worked
Hours needed = revenue target ÷ rate
```

## Explanation

Lawyers, consultants and agencies track billable hours to price work and measure productivity. Many law firms target 1,700–2,000 billable hours a year; utilisation of 70–80% is common in consulting.

### How to use the Billable Hours Calculator

- **Billable rate (per hour)**
- **Billable time**
- **Total hours worked**
- **Revenue target for the period**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter your billable rate, billable hours and total hours worked in the period, and a revenue target.

### Tips

- Tax figures here are estimates for planning – your actual tax depends on credits, deductions and local rules.
- Check the tax year and filing status before you rely on a result.
- Use gross (before-tax) figures unless a field asks for take-home pay.
- When in doubt, confirm with the tax authority's own calculator or a tax professional.

### Common mistakes to avoid

- Confusing marginal and effective tax rates.
- Adding sales tax to a price that already includes it.
- Forgetting payroll taxes (Social Security and Medicare) on wages.

### Inputs explained

FieldWhat to enterBillable rate (per hour)Amount in your currencyBillable timeIn hoursTotal hours workedA numberRevenue target for the periodAmount in your currency

### What each result means

- **Billable value** = [Billable rate (per hour)]×[Billable time]
- **Utilisation rate** = [Billable time]÷[Total hours worked]×100
- **Billable hours needed for the target** = [Revenue target for the period]÷[Billable rate (per hour)]
- **Effective rate per hour worked** = [Billable value]÷[Total hours worked]

### Example values

How the main result changes when **Billable rate** changes and everything else stays at the example values above:

Billable rate (per hour)Billable value752,100112.53,1501504,200187.55,2502256,3003008,400

## Worked example

Inputs — Billable rate (per hour): $150; Billable time: 28 hours; Total hours worked: 40; Revenue target for the period: $5,000.

Results — **Billable value = $4,200.00**; Utilisation rate = 70 %; Billable hours needed for the target = 33.3; Effective rate per hour worked = $105.00.

## FAQ

**What are billable hours?**
Time spent on client work that can be invoiced.

**What is a good utilisation rate?**
Around 70–80% for consultants.

**How many billable hours a year is typical?**
1,500–2,000 for lawyers and consultants.

**What formula does the Billable Hours Calculator use?**
Billable value = billable hours × billable rate.