Billable Hours Calculator

A billable hour is any time spent directly on client work that you can charge for. Design, development, consulting, writing, and project-specific research typically count. Internal meetings, sales calls, and admin usually do not.

If you do not separate the two, you cannot know your real effective rate. Someone billing 120 per hour but only hitting 50% billable utilization is effectively earning 60 per hour for their total working time.

For consulting and agency work, 65% to 80% billable utilization is a healthy target. Below 60% usually means too much time goes to overhead. Above 85% often signals unsustainable workload or under-reported admin time.

Reduce time spent on non-billable activities. Batch admin tasks, streamline internal meetings, automate reporting, and delegate non-core work. Time tracking itself helps because it makes the leaks visible.

Both. Per-project tracking tells you which engagements are profitable. Per-client tracking reveals which relationships generate the most revenue relative to total effort invested.