9/1/2023 0 Comments Billable hour calculator![]() One of the best ways to track your team’s hours (we think) is with Hubstaff. It includes features like tracking, analyzing, monitoring, invoicing, and more. How to calculate billable hours using Hubstaff. For this problem we will use a standard multiplier of 5.įinally, calculate the bill rate using the formula above. Apploye is a billable hour tracking tool, that is simple to use. Next, determine the multiplier to work with in order to cover utilization percentage, costs, and profit goals. Not all hours will be billed for, and this is what the multiplier in the next step is used for. You can also use a billable hours calculator to help expedite the process. TMetric is an advanced time tracking solution to automatically calculate every billable hour youve worked and generate invoices in an instant. Next, determine the total yearly capacity of that employee. For this example, we will have an employee making $90,000.00 per year. Example Problemįirst, determine the annual base salary of an employee. Calculate how much time and money you can save just by improving your billing process. U is the utilization of the capacity (%)Ī billing rate is defined as the rate a company will bill a customer per hour in order to meet certain profit goals given their understanding of their costs and capacity utilization. LawPays online payment solution can get you paid up to 39 faster.The multiplierĪnother way to calculate Bill Rate is using the following formula: The higher the multiplier the higher the profit. The multiplier in this formula is used to reach the profitability goal of the company. To calculate a bill rate, divide the employee salary by the billable capacity per year, then multiply by the overhead multiplier. M is a multiplier – typical >4 to account for overhead and other costs.C is the capacity of an employee in terms of billable hours per year (hrs) (Typically 2080 hrs) note that not all hours will be billed You calculate utilization by dividing the total hours worked during the year by billable time.
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