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Billable Hours Calculator

Turn a realistic annual work calendar and billable utilization into billable hours, nonbillable capacity and modeled service revenue.

By PriceAndProfit Editorial Updated

hours
weeks
%
$/hour

Fill in the fields: the result appears under the form, with the formula below it.

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Formula and cost boundary

Billable hours = weekly available hours × working weeks × billable fraction; revenue = billable hours × realized rate

Working weeks already exclude full weeks of absence. Do not subtract that same absence again in utilization. Utilization is a share of available time, not a markup on billable time. The rate should reflect discounts and write-offs if you want realized revenue rather than quote value. This tool estimates sales, not after-expense profit or collected cash.

Worked example: Sixty percent utilization

The following inputs are hypothetical values for checking the calculation. They are not recommended prices, wages, margins or platform charges. Keep the units and period shown in each label when replacing them with your own records.

Inputs for this worked example
InputExample value
Available working hours per week 40 hours
Working weeks in planning year 48 weeks
Billable share of available time 60%
Realized revenue per billable hour $100/hour
Outputs from the displayed inputs
ResultCalculated value
Annual billable hours 1,152 hours
Modeled service revenue $115,200
Available hours not billed 768 hours

Using the result

Save the input set alongside the source date of each quote or cost record. Review the cost boundary before comparing this result with another report: a contribution measure may exclude overhead, and a cash measure follows payment dates. Display rounding does not change the underlying assumptions. Recalculate when an input changes; the tool does not predict future sales or collections.

Are any rates supplied automatically?

No. Numeric fields are your inputs. Example values demonstrate arithmetic only. Check your contracts and records for the amounts that apply to your business.

Why might a result be unavailable or negative?

A missing denominator or inconsistent inputs can make the calculation undefined. Those combinations are rejected or labeled explicitly. A valid negative result remains visible because it may identify a loss or cash shortfall.

Method reference: OpenStax: Operating Budgets. Checked October 22, 2026. Capacity, sales and delivery-cost budgets; no market rate assumptions.

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