Billable Hours Calculator
Find your billable utilization rate and revenue.
How billable hours works
Billable utilization measures what share of total hours worked were actually billable to a client — a core metric for consultants, agencies and any professional-services business tracking productivity against revenue.
Enter total hours worked and billable hours for the period. Optionally add an hourly rate to also see billable revenue.
A utilization rate below 100% is normal and expected — administrative time, business development, and internal work are real, necessary non-billable time.
The formula
Utilization = Billable hours ÷ Total hours worked × 100. Revenue = Billable hours × Hourly rate.
Divide billable hours by total hours worked and multiply by 100 for utilization. Multiply billable hours by the hourly rate for revenue, when a rate is provided.
Worked example
40 total hours, 32 billable hours, $150/hour rate
Utilization = 32 ÷ 40 × 100 = 80%. Revenue = 32 × $150 = $4,800.
Frequently asked questions
What's a typical billable utilization target?
It varies by role and firm — many professional-services firms target somewhere between 65-85% depending on how much non-billable work (business development, admin, training) the role requires.
Is the hourly rate required?
No — leave it blank to see just the utilization rate. Add it to also calculate billable revenue for the period.
Should PTO or holidays count as total hours worked?
Typically no — total hours worked usually means actual working time. Whether to include or exclude leave depends on what your utilization metric is meant to measure; be consistent across periods.
Next steps in your analysis
Related tools
Related guides
Built by PanelRoster
PanelRoster is an enterprise operations management platform for organizations coordinating distributed teams, assignments, workflows, quality assurance and operational execution.
Explore PanelRoster