Calculate Billable Hours, Value and Utilisation
Enter weekly hours, billable percentage, working weeks and hourly rate. The result separates working capacity from invoiceable time and converts billable hours into annual and monthly value.
Convert utilisation into billable value
The default example applies 55 percent utilisation to a 35-hour, 46-week working year.
- Annual billable hours
- 886 hours
- Average monthly billable value
- $11,069
- Annual non-billable hours
- 725 hours
Working hours multiplied by billable share and rate.
Measure how much working time can actually be invoiced
Calculate annual billable hours, billable value and utilisation from weekly working time, billable share, rate and working weeks.
Set the required rate with the freelance rate calculator and connect hours to evidence using the freelance recordkeeping guide.
Separate working and invoiceable time
Count non-billable operations
Selling, admin and collection consume real capacity.
Use collected evidence
A booked hour is not the same as a paid invoice.
- Calculation method
- Working hours multiplied by billable share and rate.
- Best used for
- Freelance capacity planning, consulting utilisation and revenue forecasting.
- Keep outside the result
- Collection risk, scope changes, direct costs, tax and unpaid invoices.
Utilisation controls revenue capacity
A sustainable forecast recognises that not every working hour can be charged to a client. Leave and delivery gaps also reduce saleable capacity.
Rate and hours answer different problems
A rate can be adequate while revenue remains weak because billable hours are scarce.
Reconcile forecast with invoices
Compare planned billable hours with delivered, invoiced and collected time each month.
Convert utilisation into billable value in a worked example
The default example applies 55 percent utilisation to a 35-hour, 46-week working year. Total working capacity is reduced by the billable share before the hourly rate is applied. The remaining hours represent sales, administration, leave, training and collection work rather than unused time. Compare planned billable hours with delivered, invoiced and collected work each month.
- Total working hours per week
- 35
- Billable share of working time
- 55 %
- Working weeks per year
- 46
- Billable hourly rate
- $150
Estimated annual billable value: $132,825
Track invoiced, due and received amounts separately from capacity.
- Annual billable hours
- 886 hours
- Average monthly billable value
- $11,069
- Annual non-billable hours
- 725 hours
Calculation rule: Working hours multiplied by billable share and rate. Boundary: Collection risk, scope changes, direct costs, tax and unpaid invoices.
Billable-hours questions
Can utilisation exceed 100 percent?
No. Billable time is a share of total working capacity.
Should fixed-fee work be included?
Convert supported project hours into an effective billable value if useful.
Is billable value profit?
No. Costs and owner income requirements still need to be covered.
Turn capacity into a sustainable income system
Track salary, freelance, rental and business income with source-level records, cash timing, direct costs and a separate tax reserve.