CalculationTime

Billable Hours Calculator

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Your numbers, formula and explanation together

Billable Hours Calculator: 1,288.00 billable hours/year. 28.00 per week; 107.33 monthly average; 112,442.40 collected revenue estimate.

Formula applied

The exact method behind this answer

CalculationTime keeps the method visible so the number can be checked instead of blindly trusted.

Billable hours per week = max(0, total work hours − non-billable hours). Annual billable hours = weekly billable hours × working weeks. Monthly average billable hours = annual billable hours ÷ 12. Collected revenue = annual billable hours × hourly rate × collection rate %.
  1. Apply the formulaBillable hours per week = max(0, total work hours − non-billable hours). Annual billable hours = weekly billable hours × working weeks. Monthly average billable hours = annual billable hours ÷ 12. Collected revenue = annual billable hours × hourly rate × collection rate %.1,288.00 billable hours/year28.00 per week; 107.33 monthly average; 112,442.40 collected revenue estimate.

Your live breakdown

Current inputs in the calculation

These values come from the controls above and update when the calculator changes.

Total work hours
40 hours/week
Non-billable work
12 hours/week
Admin, sales, internal meetings, training, support, bookkeeping and unpaid gaps.
Working weeks
46 weeks/year
Billable hourly rate
90 currency/hour
Collected invoice rate
97 %
Allows for discounts, write-offs, non-payment or collection leakage.

Resulting answer

1,288.00 billable hours/year

28.00 per week; 107.33 monthly average; 112,442.40 collected revenue estimate.

Answer
1,288.00 billable hours/year
Live support
28.00 per week; 107.33 monthly average; 112,442.40 collected revenue estimate.

Assumptions used

What this answer assumes

Capacity estimate only. Pipeline, scope creep, approvals, collection and unpaid support can reduce actual revenue.

  • Non-billable hours are deducted before annual capacity is calculated.
  • Working weeks exclude holidays, sick time, planned leave, seasonal shutdowns or unpaid gaps you choose to remove.
  • The collection rate is a planning allowance for invoice leakage and does not replace credit control or contract terms.
  • Revenue is a gross billing estimate before tax, expenses, payroll, platform fees, refunds or accounting treatment.

Master’s Tip

How to use the result well

Master’s Tip: billable capacity is a ceiling, not a promise. If sales pipeline, approvals, client delays or personal energy cannot fill the available hours, actual invoices will be lower than capacity.

Printable record

What belongs in the saved calculation

Save the inputs, result, formula, assumptions, page URL and date together so the calculation can be reviewed later.

Total work hours
40 hours/week
Non-billable work
12 hours/week
Admin, sales, internal meetings, training, support, bookkeeping and unpaid gaps.
Working weeks
46 weeks/year
Billable hourly rate
90 currency/hour

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Copy a clean iframe version with the required CalculationTime attribution link built in.

Formula

Billable hours per week = max(0, total work hours − non-billable hours). Annual billable hours = weekly billable hours × working weeks. Monthly average billable hours = annual billable hours ÷ 12. Collected revenue = annual billable hours × hourly rate × collection rate %.

Worked example

40 total hours minus 12 non-billable hours leaves 28 billable hours per week. Over 46 working weeks, annual billable hours are 28 × 46 = 1,288. At 90 per hour, invoices would total 115,920. At a 97% collection rate, collected revenue is 115,920 × 0.97 = 112,442.40.

Professional note

Master’s Tip: billable capacity is a ceiling, not a promise. If sales pipeline, approvals, client delays or personal energy cannot fill the available hours, actual invoices will be lower than capacity.

Regional and unit assumptions

Standard or basis: transparent capacity and revenue arithmetic. No employment-law, tax, accounting, utilisation benchmark or industry productivity standard is claimed.

Assumptions and limitations

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

Formula used

Billable hours per week = max(0, total work hours − non-billable hours). Annual billable hours = weekly billable hours × working weeks. Monthly average billable hours = annual billable hours ÷ 12. Collected revenue = annual billable hours × hourly rate × collection rate %.

Standard or basis

Standard or basis: transparent capacity and revenue arithmetic. No employment-law, tax, accounting, utilisation benchmark or industry productivity standard is claimed.

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

Master’s Tip: billable capacity is a ceiling, not a promise. If sales pipeline, approvals, client delays or personal energy cannot fill the available hours, actual invoices will be lower than capacity.

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Questions

How do I calculate billable hours?

Subtract non-billable weekly hours from total working hours, then multiply the result by the number of working weeks in the year.

What counts as non-billable time?

Common examples include admin, sales, proposals, bookkeeping, internal meetings, training, support, travel that is not charged, and downtime between jobs.

Why include collection rate?

Not every invoice becomes collected revenue at full value. Discounts, write-offs, late payment and bad debt can make collected revenue lower than billed revenue.

Is billable capacity the same as forecast revenue?

No. Capacity shows what could be billed if the hours are sold and delivered. Forecast revenue also needs pipeline, conversion, pricing, timing and client-payment assumptions.

Can employees use this?

Yes, for utilisation planning or agency capacity checks, but payroll, overtime, employment contracts and legal work-hour rules are separate questions.

Calculation note

Billable-hours tracking grew from professional services, agencies and consulting, where time is both a delivery constraint and a pricing unit. The useful calculation separates all work from client-chargeable work before revenue is forecast.

Utilisation starts with an honest calendar

A full workweek is not the same as a full billable week. Administration, proposals, internal coordination, learning, quality control and downtime consume real hours that cannot always be charged to a client.

Annual capacity needs leave and gaps

Using 52 weeks can overstate capacity when holidays, sick time, public holidays, seasonal shutdowns or unpaid gaps exist. The working-weeks input keeps that assumption visible.

Collected revenue is lower than theoretical billing

Even when hours are worked and invoiced, discounts, write-offs, disputes and late or failed payment can reduce collected revenue. The collection-rate field is a simple way to stop capacity planning from pretending every invoice is perfect cash.

Sources and further readingU.S. Small Business Administration: Manage your business financesHarvard Business Review: Stop the Meeting Madness