Enter the total number of hours worked on a project and the hourly rate charged for those hours to calculate the total billable value.
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Billable Hours Formula
The following formula is used to calculate the total number of billable value earned from hours worked.
BV = H * R
- Where BV is the billable hours value ($)
- H is the number of hours worked on a project
- R is the rate charge for that work ($/hr)
Billable Hours Definition
Billable hours are defined as the time frame or amount of time that a contracted person worked on a specific case in which they can legally bill or charge for that time.
How to calculate billable hours value?
First, determine the total number of hours worked on a specific project. It’s important to note that if multiple projects were worked on, that the rates for each are the same, otherwise the formula will no be accurate. In those cases, you must separate each individual project. For this example, the number of billable hours was 100 hours.
Next, determine the rate charge for the work. For this contract it was agreed at the billable rate would be $200/hr.
Finally, calculate the total billable hours value using the formula:
BV = H * R
= 100 * 200