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
| Field | What to enter |
|---|---|
| Billable rate (per hour) | Amount in your currency |
| Billable time | In hours |
| Total hours worked | A number |
| Revenue target for the period | Amount 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 value |
|---|---|
| 75 | 2,100 |
| 112.5 | 3,150 |
| 150 | 4,200 |
| 187.5 | 5,250 |
| 225 | 6,300 |
| 300 | 8,400 |
Formula
Billable value = billable hours × billable rateUtilisation = billable hours ÷ total hours workedHours needed = revenue target ÷ rateWorked 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.
Frequently asked questions
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.