What are billable hours?
Billable hours are the time you spend on client work that you can legitimately charge for, calculated by multiplying hours worked by your hourly rate to determine earnings.
What is a good utilization rate for freelancers?
A utilization rate of 60-80% is typically considered healthy, since the rest of your time goes to admin, marketing, and other non-billable work.
How do you calculate billable hours revenue?
Multiply your hourly rate by the number of billable hours, then add any overtime hours billed at your overtime multiplier rate.
What is the difference between billable and non-billable hours?
Billable hours are time spent on chargeable client work, while non-billable hours cover tasks like admin, training, or marketing that you can't invoice for.
What is effective hourly rate and why does it matter?
Your effective rate is your actual earnings divided by total hours worked, including non-billable time, so it shows your real income per hour rather than just your quoted rate.