Harvest
Time Tracking
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Billing Hours Calculator

Harvest simplifies time tracking and billing with one-click timers, helping professionals avoid a 10% to 50% loss in billable hours.

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What should you charge per hour?

Most freelancers and consultants dramatically undercharge. This calculator accounts for what most people miss: non-billable time, taxes, and overhead.

$
Accounting for vacation, holidays, sick days
60%
Most freelancers can bill 50-70% of their time. The rest goes to admin, marketing, proposals, and learning.
$
Software, insurance, equipment, accounting, taxes beyond income tax, etc.
Your break-even rate $0
Recommended rate (+20% buffer) $0
Billable hours per week 0h
Equivalent daily rate $0

Start tracking your billable hours

How this hourly rate calculator works

It works back from the income you need to the rate you must bill, accounting for the hours you can't bill.

  • Billable hours/year = working weeks × hours per week × billable %.
  • Break-even rate = (target income + business expenses) ÷ billable hours.
  • Recommended rate = break-even plus a 20% buffer for taxes, slow periods, and profit.

Raising your billable percentage or trimming expenses lowers the rate you need.

Billing Hours Calculation with Harvest

See how Harvest simplifies time tracking and billing. Calculate billable hours using Harvest's intuitive interface.

Harvest time tracking interface for billing hours calculation

Billing Hours Calculator FAQs

  • Freelancers track billable hours by logging time spent on client-specific tasks. Tools like Harvest allow for real-time tracking and manual entries, ensuring accuracy and ease in managing work hours.

  • Billable hours are the time spent on tasks that can be directly charged to a client. They are crucial for revenue generation in service-based industries such as legal, consulting, and freelance work.

  • To calculate billable hours accurately, use a time tracking tool like Harvest. It provides features like one-click timers and detailed reports to ensure precise logging of work hours.

  • When setting an hourly rate, consider factors like experience, industry standards, and market demand. Tools like Harvest can help calculate your effective hourly rate by analyzing tracked hours and expenses.

  • Harvest distinguishes between billable and non-billable hours, allowing for accurate invoicing and better insight into time spent on various activities. This ensures clearer billing and efficient time management.

  • Real-time time tracking is crucial as it prevents the loss of billable hours. Delays in tracking can lead to losing 10-50% of potential revenue, which Harvest counters with its efficient logging features.

  • A good billable utilization rate for consultants is typically between 75%-85%. Harvest's utilization rate reports assist in monitoring and improving this metric to boost profitability.