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All calculatorsMethodology

Billable Hours Calculator

Subtract planned nonbillable work from available hours and estimate bill value and utilization at an entered hourly rate.

Interactive calculator · Method BILLABLEHOURS-1.0 · Last reviewed: 2026-10-05

Calculate your scenario

Available hours = workdays × hours per day. Billable hours = available − nonbillable hours. Utilization (%) = billable/available × 100; zero available hours has no defined utilization. Entered bill value = billable hours × entered rate.

Your inputs

Try an example

Default worked example. Edit the inputs to calculate your scenario.

Default worked example

Billable hours 120 hr
Available hours 160 hr
Utilization 75%
Entered bill value $12,000.00

160 available hours − 40 nonbillable hours = 120 billable hours, multiplied by the entered rate for $12,000.00.

How to use the calculator

Choose one period. Enter workdays and available hours per day, total nonbillable hours in that same period and an hourly rate. Read billable time and utilization separately from entered bill value.

What the result means

Twenty eight-hour workdays provide 160 hours. After 40 nonbillable hours, 120 billable hours imply 75% utilization and $12,000 entered bill value at $100/hour.

Formula and units

Available hours = workdays × hours per day. Billable hours = available − nonbillable hours. Utilization (%) = billable/available × 100; zero available hours has no defined utilization. Entered bill value = billable hours × entered rate.

Worked examples

Twenty-day work month: Workdays in this period: 20 days; Available hours per day: 8 hours/day; Nonbillable hours in this period: 40 hours; Entered billing rate: 100 USD/hour.
Example result: Billable hours: 120 hr; Available hours: 160 hr; Utilization: 75%; Entered bill value: $12,000.00.

Five-day short work week: Workdays in this period: 5 days; Available hours per day: 6 hours/day; Nonbillable hours in this period: 6 hours; Entered billing rate: 80 USD/hour.
Example result: Billable hours: 24 hr; Available hours: 30 hr; Utilization: 80%; Entered bill value: $1,920.00.

Limitations and common mistakes

Nonbillable hours must not exceed available hours. Use the same period for all entries. Bill value is not collected revenue and does not include discounts, write-offs, overtime, holidays, taxes or multiple rates.

Nonbillable hours are a period total, not hours per day. The calculated bill value does not account for unpaid invoices, tax or collection timing.

Sources and assumptions

Method BILLABLEHOURS-1.0; last formula review 2026-10-05. Sources and their supported claims. Calculation methodology.