Billable Hours Calculator for a Revenue Target

Enter the revenue you want to collect, your hourly rate and how much of your time actually turns into collected money. The calculator shows how many hours you need to record, over the year and in a typical week.

Revenue you want to collect in a year ($) Hourly rate ($) Realization: share of recorded time that reaches an invoice (%) Collection: share of invoiced money you collect (%) Weeks you work in a year

Amount to invoice

$159,574

Hours that must reach invoices

638

Hours to record in a year

725

Hours to record in a week

15.8

Amount to invoice is the revenue target divided by the collection rate. Divide that by your hourly rate to get the hours that must reach invoices, then divide by the realization rate to get the hours you need to record. Divide the yearly figure by the weeks you work for the weekly number. Each box opens with a sample figure. Put your own in before you lean on the answer.

How this works

A revenue target is collected money, but you earn it in recorded time. Two things sit in between. Realization is the share of recorded time that makes it onto an invoice at full value, after write-downs. Collection is the share of invoiced money that clients actually pay.

The steps are:

1. Amount to invoice = revenue target ÷ collection rate.
2. Hours that must reach invoices = amount to invoice ÷ hourly rate.
3. Hours to record = hours that must reach invoices ÷ realization rate.
4. Hours per week = hours to record ÷ weeks worked.

Limits to keep in mind: the calculator assumes one blended hourly rate, so a firm with several rates or with flat-fee and contingent work will get a rough answer at best. It counts only billable time, so hours spent on intake, administration and marketing come on top. The starting values are placeholders and not benchmarks. Check any pricing or budget decision with your accountant, and keep in mind that fee rules differ by state.