Capacity, utilization and revenue
Billable Hours Calculator
Turn total work time and a utilization target into billable hours, non-billable hours and estimated revenue for a week, month or year.
Estimate billable time
Target billable hours30.00 hours$3,000.00 estimated collected revenue
- Non-billable hours
- 10.00 hours
- Gross billed value
- $3,000.00
- Effective revenue per work hour
- $75.00
- Annualized revenue
- $156,000.00
What billable utilization means
Utilization is the percentage of working time that can be billed to a client. A 75% target across 40 working hours means 30 billable hours and 10 non-billable hours.
Billable hours = total working hours × utilization percentage
Revenue is not profit
The revenue estimate does not subtract wages, taxes, software, overhead or uncollected invoices. The annualized figure simply scales the selected period to 52 weeks, 12 months or one year.
Frequently asked questions
Can freelancers use this calculator?
Yes. Enter all available working hours, the share you expect to invoice and your client rate.
What counts as non-billable time?
Examples include administration, training, sales, internal meetings and time that is written off under a client agreement.