Billable Hours Calculator

Estimate how many hours a person or team can realistically bill in a year, and what that is worth.

How billable hours are calculated

Capacity = Hours per day × Days per week × Weeks per year Available hours = Capacity − (Leave days × Hours per day) Billable hours = Available hours × (1 − Non-billable %) Utilization = Billable hours ÷ Capacity × 100

Example

8 hours × 5 days × 52 weeks = 2,080 hours of capacity. Taking away 30 days of leave and holidays (240 hours) leaves 1,840 available hours. If 25% of that goes on admin, meetings and training, 1,380 hours are billable, a 66.3% utilization. At ₹2,000 an hour that is ₹27.6 lakh of billable revenue a year.

Typical utilization targets

Role	Typical billable utilization
Junior consultants / associates	75–85%
Senior consultants / managers	60–75%
Partners / directors	30–50%
Freelancers (incl. finding work)	50–70%

Targets above about 85% for long periods usually lead to burnout and leave no time for training or business development.

Frequently asked questions

Why not bill 40 hours a week?

Every job includes non-billable work: email, internal meetings, proposals, invoicing, learning and holidays. Planning on 100% billable time makes quotes and revenue forecasts unrealistic.

How do I use billable hours to set my rate?

Divide the revenue you need by your realistic billable hours. The Hourly Rate Calculator does this, including expenses and tax.

Results are for planning and information only and are not accounting or financial advice. Check important figures with your accountant.