Billable Hours Calculator
Billable value = billable hours × hourly rate. Enter your rate and hours to see what your time is worth, your utilization rate and your effective hourly rate. Switch modes to plan an annual billable-hours target or round time entries to 6-minute legal increments. Free, no sign-up.
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Client work you can invoice
Admin, sales, meetings, learning
Add expenses, discount, realization and collection
Share of billable time you invoice
Share of invoices clients pay
Vacation, public holidays and sick days
Billable share of hours at work
Working year: 260 weekdays minus your days off. With 30 days off that is 230 working days, or 46 five-day weeks.
Each entry is rounded up to the next increment on its own; 0 minutes stays 0. Whether you round, and by how much, depends on your client agreement and the billing rules that apply to you, not on a universal legal rule.
Billable value this week
$9,600
32 h × $300.00
- Utilization rate
- 71.1%
- Effective hourly rate
- $213.33
- Total hours worked
- 45 h
Your numbers stay in your browser. Nothing is stored.
How to calculate billable hours
To calculate billable hours, add up the time you spent on client work you can invoice, convert the minutes to decimal hours and multiply the total by your hourly rate. The result is the billable value of your time:
Billable value = billable hours × hourly rate
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Record the time spent on each client task
Track it while you work, per client and project or matter, and keep billable and non-billable time apart.
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Convert minutes to decimal hours
Divide the minutes by 60 (45 minutes = 0.75 h). If your client agreement uses billing increments, round each entry up to the next increment first.
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Multiply by your hourly rate
Add up the decimal hours and multiply the total by the rate you agreed with the client.
Example with the calculator's default values: 32 billable hours × $300 = $9,600. If you also spent 13 non-billable hours that week, you worked 45 hours in total. Two more formulas show what those hours earned:
Utilization rate = billable hours ÷ total hours × 100% = 32 ÷ 45 = 71.1%
Effective hourly rate = revenue ÷ total hours = $9,600 ÷ 45 = $213.33
So every hour you worked earned $213.33, not $300. The gap is the 13 non-billable hours, worth $3,900 at your rate, that no client paid for.
Converting minutes to decimal hours
Divide the minutes by 60 to get decimal hours: 15 minutes is 0.25 hours and 45 minutes is 0.75 hours. Invoices use decimal hours because they multiply directly by an hourly rate. Writing 1 hour 20 minutes as 1.20 undercharges the client's bill; the correct value is 1.33. Values below are rounded to two decimals. For any other duration, convert minutes to decimal hours with our free calculator.
| Minutes | Decimal hours |
|---|---|
| 15 min | 0.25 |
| 20 min | 0.33 |
| 30 min | 0.5 |
| 45 min | 0.75 |
| 50 min | 0.83 |
Billable hours chart: 6-minute billing increments
In 6-minute billing, one hour is split into 10 units of 0.1 hours. Any time from 1 to 6 minutes is billed as 0.1 h, 7 to 12 minutes as 0.2 h, and so on, always rounded up. Each time entry is rounded on its own, and an entry of 0 minutes is not billed.
| Minutes worked | Billed as (decimal) | Units |
|---|---|---|
| 1-6 minutes | 0.1 h | 1 |
| 7-12 minutes | 0.2 h | 2 |
| 13-18 minutes | 0.3 h | 3 |
| 19-24 minutes | 0.4 h | 4 |
| 25-30 minutes | 0.5 h | 5 |
| 31-36 minutes | 0.6 h | 6 |
| 37-42 minutes | 0.7 h | 7 |
| 43-48 minutes | 0.8 h | 8 |
| 49-54 minutes | 0.9 h | 9 |
| 55-60 minutes | 1.0 h | 10 |
Whether you bill in 6-minute increments depends on your client agreement and the billing rules that apply to you; it is a common convention, not a universal legal requirement.
Why do lawyers bill in 6-minute increments?
Lawyers bill in 6-minute increments because 6 minutes is exactly one tenth of an hour, so every unit converts to a clean 0.1 on the invoice and multiplies easily by an hourly rate. The convention is widespread in US legal billing. The US District Court for the Northern District of California, for example, publishes a CJA billing increment chart for appointed counsel that maps 1 to 6 minutes to 0.1 hours and 55 to 60 minutes to 1.0 hour. Compared with 15-minute blocks, 6-minute units bill short calls and emails more precisely: a 5-minute call is 0.1 hours instead of 0.25 hours. Your engagement letter decides which increment applies.
10-minute and 15-minute billing increments
Some professionals bill in 10-minute (about 0.17 h) or 15-minute (0.25 h) increments. Larger increments keep timesheets simpler but make invoices coarser, because each entry is still rounded up: a 16-minute task is billed as 0.5 hours in 15-minute billing. They suit work done in longer blocks, such as consulting or agency projects. Agree the increment with the client before you start and use the same rule on every entry.
| Minutes worked | Billed as (decimal) |
|---|---|
| 1-15 minutes | 0.25 h |
| 16-30 minutes | 0.50 h |
| 31-45 minutes | 0.75 h |
| 46-60 minutes | 1.00 h |
Download the billable hours chart (PDF)
Get the 6-minute billing chart as a one-page PDF to print or keep next to your timesheet. It shows the same 10 rows as the 6-minute table on this page. No sign-up or email needed.
Download chart (PDF, 34 KB)
How many billable hours are there in a year?
The billable hours in your year are your annual target spread over your working days. 1,800 billable hours a year is about 39 billable hours a week or 7.8 hours a day across 230 working days (260 weekdays minus 30 days off).
Assumptions used in this table, the calculator and the FAQ: 260 weekdays a year minus 30 days off for vacation, holidays and sick days = 230 working days, or 46 five-day weeks. Per month = annual hours ÷ 12. Hours at work = billable hours ÷ 75% utilization.
| Billable hours / year | Per month | Per week | Per day | Hours at work / day (75% utilization) |
|---|---|---|---|---|
| 1,200 | 100.0 | 26.1 | 5.2 | 7.0 |
| 1,500 | 125.0 | 32.6 | 6.5 | 8.7 |
| 1,600 | 133.3 | 34.8 | 7.0 | 9.3 |
| 1,800 | 150.0 | 39.1 | 7.8 | 10.4 |
| 1,900 | 158.3 | 41.3 | 8.3 | 11.0 |
| 2,000 | 166.7 | 43.5 | 8.7 | 11.6 |
| 2,200 | 183.3 | 47.8 | 9.6 | 12.8 |
| 3,000 | 250.0 | 65.2 | 13.0 | 17.4 |
Is 1,800 billable hours a lot?
Yes, 1,800 billable hours is a full workload. Spread over 230 working days it means 7.8 billable hours a day, and because not every hour at work is billable, at 75% utilization you need about 10.4 hours at work each working day. For comparison, law firm associates are commonly expected to bill 1,800 to 2,200 hours a year, yet they billed about 1,542 hours on average in 2023 (ABA Litigation News, 2025). Targets differ widely from firm to firm, so check your own firm's current requirement before you plan your year around a number.
Billable vs non-billable hours
Billable hours are the hours you can invoice to a client; non-billable hours are work time no client pays for directly, such as admin, invoicing and sales. Both count as hours worked, but only billable hours produce revenue at your hourly rate. Which tasks are billable is set by your agreement with each client.
Billable
- Client calls and meetings
- Drafting documents, designs or code for a client
- Research for a client's matter or project
- Travel for a client, if the contract allows it
Non-billable
- Admin and email housekeeping
- Invoicing and bookkeeping
- Sales, pitches and proposals
- Internal meetings
- Training and learning
Non-billable time is a cost your hourly rate has to cover. If 13 of your 45 hours a week are non-billable, each of your 32 billable hours also has to pay for about 0.4 hours that no client sees. Is your hourly rate high enough? The Hourly Rate Calculator shows the rate that covers it.
Billable hours vs actual hours worked
Actual hours worked include every hour you spend working; billable hours are only the part you invoice. A week with 32 billable hours out of 45 hours worked has a 71.1% utilization rate: 13 hours went to admin, sales and other non-billable tasks. At $300 an hour those 13 hours are worth $3,900 you cannot invoice, which is why the effective hourly rate ($213.33) is lower than the billing rate.
Utilization, realization and collection rates
Utilization, realization and collection rates show how much of your working time turns into billed and paid revenue. Utilization is the share of hours that are billable, realization the share of billable work that gets invoiced, and collection the share of invoiced work that clients pay.
Utilization rate = billable hours ÷ total hours worked × 100%
Realization rate = billed hours ÷ billable hours × 100%
Collection rate = amount collected ÷ amount billed × 100%
For 2026, Clio projects that lawyers will record about 3.4 billable hours in an average eight-hour day (42% utilization, up from 39% in 2025), invoice about 3.0 hours of that work (90% realization) and collect payment for about 2.8 hours (92% collection) (Clio Legal Trends Report 2026). Clio measures utilization against an eight-hour day rather than against all hours worked. Small leaks at each stage add up: of 8 hours at work, only about 2.8 end up paid.
The optional realization and collection fields in the calculator apply the same funnel to your numbers. With the default 32 billable hours at $300, 90% realization and 95% collection, $9,600 of billable work becomes $8,640 invoiced and $8,208 collected. Your effective hourly rate across all 45 hours worked then drops from $213.33 to $182.40.
What is a good utilization rate?
A good utilization rate depends on your field and role. Professional services firms averaged 66.4% billable utilization in 2025, the lowest point in SPI Research's survey history (SPI Research 2026 Professional Services Maturity Benchmark). Accounting firms reported a median utilization of 66.0% for associates and 58.1% for owners in fiscal year 2024 (AICPA MAP Survey 2025), and lawyers recorded 39% of an eight-hour day as billable in 2025 (Clio Legal Trends Report 2026). Compare yourself with peers who measure utilization the same way, and watch the trend rather than a single week.
Billable hours benchmarks by profession
Billable hours differ widely by profession. Law firm associates are typically expected to bill 1,800 to 2,200 hours a year, while consulting firms and agencies bill about two-thirds of a 2,000-hour year. The table lists published figures with their year and source.
| Profession | Billable hours | Utilization | Source |
|---|---|---|---|
| Lawyers (associate) | Targets of 1,800-2,200 h a year; about 1,542 h billed on average (2023) | About 77% of a 2,000-hour year (1,542 h) | ABA Litigation News, 2025 |
| Lawyers (all firm sizes) | About 3.1 h of an 8-hour day (2025); 3.4 h projected for 2026 | 39% of an 8-hour day (2025); 42% projected for 2026 | Clio Legal Trends Report 2026 |
| Accountants / CPAs | 1,342-1,366 billable hours a year per staff member, by firm size (2025) | 66.0% for associates, 58.1% for owners (median, fiscal 2024) | Rosenberg Survey 2026 (2025 data); AICPA MAP Survey 2025 (fiscal 2024) |
| Management consultants | About 1,350 h a year (67.4% of 2,000 h) | 67.4% | SPI Research, 2025 (2024 data) |
| Agencies | About 1,290 h a year (64.4% of 2,000 h) | 64.4% | SPI Research, 2025 (2024 data) |
| Freelancers | 42 h worked a week on average (2026) | 80-90% for 46% of freelancers, who spend 10-20% of their time on non-billable tasks | freelancermap Freelancer Study 2026 |
| Professional services firms (all) | About 1,330 h a year (66.4% of 2,000 h) | 66.4% | SPI Research, 2026 (2025 data) |
Sources measure utilization differently: SPI Research divides billable hours by a 2,000-hour year (hours above are that share of 2,000, and the associate figure uses the same 2,000-hour year), while Clio uses an eight-hour day. Compare figures from the same source.
Billable hours for lawyers
In law, billable hours are the time a lawyer records on client matters and bills at an hourly rate, usually in 6-minute (0.1-hour) increments. Firms often set an annual billable-hour requirement for associates: targets have long ranged from 1,800 to 2,200 hours a year, and some firms now ask for 2,400 "productive" hours that include non-billable work (ABA Litigation News, 2025). Associates billed about 1,542 hours on average in 2023, which across 230 working days is about 6.7 billable hours a day. Across firm sizes, lawyers recorded 39% of an eight-hour day as billable in 2025, about 3.1 hours, and Clio projects 3.4 hours (42%) for 2026 (Clio Legal Trends Report 2026).
How to track billable hours without losing time
Track billable hours while you work, not from memory at the end of the week, and tag every entry as billable or non-billable. TimeCamp is a time tracking software that automatically records billable and non-billable hours and turns them into invoices and reports.
- Automatic time tracking. TimeCamp records your work time as you go, so short calls and emails do not slip through.
- Billable and non-billable tags. Mark projects and tasks as billable or non-billable and see the split in your reports.
- Invoices from hours. Turn tracked billable hours into invoices at your rates, without copying hours from a spreadsheet.
Frequently asked questions
What is a billable hour?
A billable hour is one hour of work you can invoice to a client at your hourly rate, so 32 billable hours at $300 are worth $9,600. A client call, drafting a contract or research for a client's project are billable. Admin, invoicing, sales and internal meetings are non-billable: they are part of your working day, but no client pays for them directly.
How do billable hours work?
Billable hours work in 4 steps: you record the time spent on each client task, round each entry up to your billing increment, multiply the billed hours by your hourly rate and send the total on an invoice. Many US law firms bill in 6-minute increments, so a 7-minute call is billed as 0.2 hours. Whether and how you round depends on your agreement with the client.
How many billable hours are 42 minutes?
42 minutes are 0.7 billable hours in 6-minute increments, because 42 ÷ 6 = 7 units of 0.1 hours. In 15-minute increments the same 42 minutes are billed as 0.75 hours (3 units of 0.25 hours), because each entry is rounded up to the next full increment. Without rounding, 42 minutes are exactly 0.7 decimal hours (42 ÷ 60).
How many hours a day is 1,800 billable hours?
1,800 billable hours a year is 7.8 billable hours a day, or 39.1 hours a week, across 230 working days (260 weekdays minus 30 days off for vacation, holidays and sick days). Not every hour at work is billable: at 75% utilization you need about 10.4 hours at work each working day to reach 1,800 billable hours.
How many hours a day is 1,600 billable hours a year?
1,600 billable hours a year is 7.0 billable hours a day, or 34.8 hours a week, across 230 working days (260 weekdays minus 30 days off). At 75% utilization, meaning three of every four hours at work are billable, that is about 9.3 hours at work each working day. It leaves more room than 1,800 or 2,000 hours for admin, sales and training.
Is 2,000 billable hours a lot?
Yes, 2,000 billable hours a year is a demanding target: 8.7 billable hours a day, or 43.5 hours a week, across 230 working days (260 weekdays minus 30 days off). At 75% utilization that is about 11.6 hours at work each working day. Associate targets have long ranged from 1,800 to 2,200 hours, yet associates billed about 1,542 hours on average in 2023 (ABA Litigation News, 2025).
How many hours a week is 3,000 billable hours?
3,000 billable hours a year is 65.2 billable hours a week, or 13.0 billable hours a day, across 230 working days (260 weekdays minus 30 days off). At 75% utilization that is about 17.4 hours at work every working day, which is not sustainable over a whole year. Treat a 3,000-hour figure as a warning sign, not as a target.
Why do lawyers bill in 6-minute increments?
Lawyers bill in 6-minute increments because 6 minutes is exactly 0.1 hours, so every unit converts to a clean decimal on the invoice. It is a widespread convention in US legal billing: the US District Court for the Northern District of California publishes a CJA billing chart that maps 1 to 6 minutes to 0.1 hours. Small units also bill short calls more precisely. See the 6-minute billing chart.
Should I bill in 6-minute or 15-minute increments?
Bill in 6-minute increments when you need precision or work in law, where 0.1-hour units are the usual convention. 15-minute increments keep records simpler and suit work done in longer blocks, such as consulting projects. The choice changes the invoice: 42 minutes is 0.7 hours in 6-minute billing and 0.75 hours in 15-minute billing. Use the increment your client agreement specifies.
Do you get paid for non-billable hours?
Employees are paid for non-billable hours through their salary; freelancers and firm owners are paid for them only through their rate, so 13 non-billable hours a week at $300 are $3,900 that no client pays for directly. Admin, sales and invoicing have to be priced into every billable hour: with 32 billable hours a week, that time is part of what your $9,600 has to cover. Check whether your rate covers it with the Hourly Rate Calculator.
What is a good billable utilization rate?
A good billable utilization rate depends on your industry: professional services firms averaged 66.4% in 2025 (SPI Research, 2026), while lawyers recorded 39% of an eight-hour day as billable in 2025 (Clio Legal Trends Report 2026). Compare yourself with peers who measure utilization the same way, and watch the trend over months rather than a single week.
How do I calculate my effective hourly rate?
Divide the revenue you earn by all the hours you worked, billable and non-billable: $9,600 ÷ 45 hours = $213.33 an hour if you bill 32 hours at $300 and also spend 13 non-billable hours. That is about 29% below your $300 billing rate. Use the money clients actually pay, after discounts and unpaid invoices, to see what an hour of your time earns.
What is the difference between utilization and realization?
Utilization measures how much of your working time is billable (42% of an eight-hour day for lawyers, as Clio projects for 2026); realization measures how much of that billable work is actually invoiced (90%), according to Clio's Legal Trends Report 2026. High utilization with low realization means work gets done but written off. Track both, because a high billable share alone does not pay the bills.
Is this billable hours calculator free?
Yes, all 3 modes of the billable hours calculator are free and need no sign-up. Your numbers stay in your browser and nothing you type is stored. TimeCamp is a time tracking software that automatically records billable and non-billable hours and turns them into invoices and reports. Start tracking for free to work with real hours instead of estimates.
Sources
- Clio, Legal Trends Report 2026, October 2026. Utilization 39% in 2025 and 42% projected for 2026 (Clio press release, October 26, 2026); 2026 law firm KPIs: utilization 42%, realization 90% and collection 92% (Clio's law firm KPI page).
- Certinia, Analyzing the 2026 SPI Research Professional Services Maturity Benchmark Report, 2026 (2025 data).
- SPI Research, 2025 Professional Services Maturity Benchmark, February 2025 (2024 data). Billable utilization by market: management consulting 67.4%, agencies 64.4%; utilization is billable hours divided by 2,000.
- AICPA PCPS and CPA.com, 2025 National MAP Survey Executive Summary, 2025 (fiscal year 2024 data). Median utilization per position.
- Rosenberg Associates, 2026 Rosenberg Survey: 7 Things You Need to Know, September 2026 (2025 data). Average billable hours per professional staff member: 1,342 at firms over $20M, 1,345 to 1,366 at smaller firms.
- freelancermap, How Many Hours Do Freelancers Work? (Freelancer Study 2026), updated August 2026. Freelancers work 42 hours a week on average; 46% spend about 10 to 20% of their time on non-billable tasks.
- American Bar Association, Litigation News: The High Cost of High Expectations, Fall 2025. Associate billable-hour targets of 1,800 to 2,200 hours a year; average billable hours per associate about 1,542 in 2023.
- US District Court, Northern District of California, Billing Increment Chart - Minutes to Tenths of an Hour (CJA), undated. Accessed October 2026.