Billable Hours Calculator

Created by Wei Bin Loo
Reviewed by Dominik Czernia, PhD and Adena Benn
Last updated: Oct 29, 2022

With this billable hours calculator, you can easily calculate the billable hours and billable value of your job. This will allow you to understand how much your company values you.

This article will help you to understand what are billable hours and how to calculate the billable hours. We will also show you its application by demonstrating some examples.

What are billable hours? Billable hours meaning

🙋 Billable means that a fee can be charged for the service or time.

Billable hours are the amount of your work time that can be charged to your employers or clients.

By knowing your billable hours and billable rate, you will be able to calculate the amount of money or salary you are eligible to claim from your employers or clients. We will discuss the calculations below with an example of how we use the billable hours to calculate the billable value.

To understand more on this topic, please check out our salary calculator and bill rate calculator.

How to calculate billable hours and billable value

To help you understand the calculation of the billable value, let's take Mirabelle as an example:

  • Name: Mirabelle
  • Billable rate: $20 per hour
  • Billable time: 120 hours

The billable value calculation only takes three steps:

  1. Determine your billable rate:

    The first step is to determine the billable rate. The billable rate or hourly rate is the salary you and your employer have agreed upon in exchange for your service for a certain duration, for example, per hour. For Mirabelle, her billable rate is $20 per hour.

  2. Calculate your billable hours or billable time:

    Next, we need to calculate the billable time. The billable time is the amount of time you have worked. Mirabelle has worked for 120 hours. Typically to calculate the billable hours, you need to write down your daily work hours and add all of them together at the end of the period.

  3. Calculate the billable value:

    The last step is to calculate the billable value. You can calculate it using the billable value formula:

    billable value = billable rate × billable time.

    For our billable hours example, Mirabelle's billable value is 20 × 120 = $2,400.

If you need to repeat the above steps many times or want to check the answer, our billable hours calculator is a guaranteed way to find the answer.

Why is billable hours important?

Understanding billable hours can be critical, especially to part-time workers or freelancers who usually charge their clients by the amount of time they put into completing their projects. When you understand this concept, you will know how to increase your overall earnings by participating in part-time jobs or freelancing.

Even though we generally use billable hours in part-time and freelancing jobs, some service companies such as law firms and consulting firms also charge their client using billable hours.

FAQ

What is hourly billable rate?

The hourly billable rate is the amount of money or salary you get by putting in an hour of work. Multiply it by the hours you worked, and you will get the billable value.

How can I calculate my billable value?

You can calculate your billable value in three steps:

  1. Determine your billable rate.

  2. Calculate your billable time or billable hours.

  3. Apply the billable value formula:

    billable value = billable rate × billable time.

What is the billable value for 24 hours of work at $15 per hour?

$360. The billable value for 24 hours of work at $15 per hour is calculated:
Billable value = 24 × 15 = $360.

Can billable hour be negative?

No, billable hours cannot be negative. This is because there is no negative time, and no one can work for less than 0 hours.

Can billable hours be applied to full-time jobs?

Although we typically use billable hours in freelance and part-time jobs, they can also be applied in full-time employment. For instance, by calculating the billable hours, you will know how much you are getting paid by working for an hour at your full-time job.

Wei Bin Loo
Billable rate
$
per h
Billable time
hrs
Billable value
$
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