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.
Related tools
Built by PanelRoster
PanelRoster is an enterprise operations management platform for organizations coordinating distributed teams, assignments, workflows, quality assurance and operational execution.
Explore PanelRoster