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Billable hours calculator: for one person or your whole team
To calculate billable hours, convert each person's time to decimal hours, apply your rounding rule, then multiply by their hourly rate.
This calculator does it for one person or a whole team, each at their own rate, and adds up the total to bill.
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When a spreadsheet stops working
A team billable-hours total tells you what happened last month. Kavaro is resource management software for agencies and consultancies. Each project has a billability setting, so the schedule shows who is booked on billable work in the coming weeks, and booked hours become timesheet suggestions. The shortfall shows up before the month closes.
Plan your team's billable hours ahead, not after: try Kavaro freeYour results
73.25 billable hours · £6,393.75 to bill · effective rate £87.29/h
| Name | Hours | h:mm | Rate | Amount | Share |
|---|---|---|---|---|---|
| Designer | 32.50 | 32:30 | £85 | £2,762.50 | 44.4% |
| Developer | 28.75 | 28:45 | £95 | £2,731.25 | 39.2% |
| Project manager | 12.00 | 12:00 | £75 | £900.00 | 16.4% |
8.00 billable hours · £760.00 to bill · effective rate £95.00/h
How to calculate billable hours
- Record the time. A clock time such as 09:15–17:45 with a 30-minute break is 8.00 hours. An end time after midnight, such as 22:00–02:00, counts as the next day.
- Convert it to decimal hours. Hours plus minutes ÷ 60. 28:45 is 28.75. 7h 30m and 7.5 are the same.
- Apply the rounding rule, if the contract has one, to each entry before you add them up.
- Multiply the rounded hours by that person's rate.
- Sum the hours and the amounts.
Worked example: a designer logs 32.5 hours at £85 (£2,762.50), a developer logs 28:45 at £95 (28.75 hours, £2,731.25) and a project manager logs 12 hours at £75 (£900.00). The team total is 73.25 billable hours and £6,393.75 to bill. The effective rate is £87.29/h, which is not any one person's rate. Shares of the hours are 44.4%, 39.2% and 16.4%.
Minutes to decimal hours
Decimal hours = minutes ÷ 60. Rows marked as a 6-minute increment are the 0.1 hour steps.
| Minutes | Decimal hours | 6-minute increment |
|---|---|---|
| 5 | 0.0833 | |
| 6 | 0.1000 | Yes |
| 10 | 0.1667 | |
| 12 | 0.2000 | Yes |
| 15 | 0.2500 | |
| 18 | 0.3000 | Yes |
| 20 | 0.3333 | |
| 24 | 0.4000 | Yes |
| 25 | 0.4167 | |
| 30 | 0.5000 | Yes |
| 35 | 0.5833 | |
| 36 | 0.6000 | Yes |
| 40 | 0.6667 | |
| 42 | 0.7000 | Yes |
| 45 | 0.7500 | |
| 48 | 0.8000 | Yes |
| 50 | 0.8333 | |
| 54 | 0.9000 | Yes |
| 55 | 0.9167 | |
| 60 | 1.0000 | Yes |
Rounding billable time: 6-minute vs 15-minute increments
Six minutes is 0.1 of an hour and is common in legal billing. Fifteen minutes is 0.25 of an hour and is common in agencies. Neither rule is universal. The contract decides whether you round to the nearest increment or up to the next one, and it decides which increment you use. This calculator applies the rule to each entry before the total, and it says so in the result when a rule is on. 3 hours 20 minutes (200 minutes) is 3.25 hours to the nearest 15 minutes, 3.50 if you round up, 3.3 hours to the nearest 6 minutes, and 3.4 if you round up.
Totalling billable hours for a team
A team total is not one rate times one pile of hours, unless everyone bills the same rate. Each person's amount is their hours times their rate. The effective rate is the total amount ÷ the total hours. In the example that is £6,393.75 ÷ 73.25 = £87.29/h, which sits between the £75 and £95 rates because the people did not log the same number of hours. The share column shows who carried the billable load. It is not a utilisation figure. For capacity against a target, use the billable utilisation calculator (utilization, in US spelling). For where the non-billable hours went, use the billable vs non-billable hours calculator.
Questions people ask
How many billable hours a year is normal?
There is no single published number of billable hours a year that fits every agency. What is published is billable utilisation, billable hours divided by available hours. Use the billable utilisation calculator for that question.
What's the difference between billable and non-billable hours?
Billable hours are time a client pays for. Non-billable hours are the rest of the time that was logged. This calculator totals billable hours and the amount to bill. The billable vs non-billable hours calculator prices the rest.
How do you convert minutes to decimal?
Divide the minutes by 60. 30 minutes is 0.50 hours, 15 minutes is 0.25, and 6 minutes is 0.10. The table above lists 5-minute steps and the 6-minute increments.
Do you round billable hours up?
Only if the contract says so. Six-minute increments are common in legal billing and 15-minute increments are common in agencies. Rounding can be to the nearest increment or up to the next one. The contract decides.