What is Billable Hours?
Hours worked on client projects that can be charged to the client, as opposed to non-billable hours spent on admin, sales, or professional development.
What Are Billable Hours?
Billable hours are the hours you can legitimately charge to a client. They typically include time spent directly on their project — designing, writing, coding, consulting, reviewing, or communicating about the project.
Non-billable hours include: business development, networking, admin tasks, invoicing, professional development, and internal meetings.
Calculating Your Annual Billable Hours Target
**Annual Billable Hours = (Working Days/Year) × (Hours/Day) × (1 - Admin Time %)**
Example:
Setting a Realistic Billable Hours Target
Most freelancers can bill 25-35 hours per week sustainably. Going above 40 billable hours weekly for extended periods leads to burnout and leaves no time for business development.
Tracking Billable Hours
Use time tracking tools (Toggl, Harvest, Clockify) even on fixed-price projects — this helps you understand the true cost of your work and improve future quotes.
Related Calculators
Billable Hours Calculator
Calculate how many billable hours per week you need to hit your income target after accounting for vacation, sick days, and admin time.
Utilization Rate Calculator
Calculate your freelance utilization rate — the percentage of working time spent on billable client work.
Hourly Rate Calculator
Calculate your optimal freelance hourly rate based on your income goal, billable hours, overhead costs, and desired profit margin.
Related Terms
Related Comparisons
Invoicing, Tax & Tools
Bill clients, track time, and file taxes — software built for the self-employed