Legal Billable Hours Calculator
Calculate total legal fees from hourly rate and hours worked.
Track retainer balance, overage charges, and see a full breakdown of all billable time.
Billable hours tracking is essential for law firms, consultants, accountants, and any professional who bills clients by time. Accurate tracking directly determines revenue.
Basic billing formula: Invoice Amount = Hours Worked × Hourly Rate
For partial hours (using decimal notation): 15 minutes = 0.25 hours 30 minutes = 0.50 hours 45 minutes = 0.75 hours
Monthly revenue from billable hours: Monthly Revenue = Billable Hours per Month × Hourly Rate
Effective hourly rate (accounting for non-billable time): Effective Rate = Monthly Revenue ÷ Total Hours Worked (billable + non-billable)
Worked example: An attorney bills 120 hours in a month at $350/hour. Monthly Revenue = 120 × $350 = $42,000
They actually worked 160 total hours (40 hours were admin, business development, and internal meetings). Effective Rate = $42,000 ÷ 160 = $262.50/hour effective rate
Utilization rate: Utilization % = (Billable Hours ÷ Total Available Hours) × 100
Example: 120 billable hours out of 160 available work hours: Utilization = (120 ÷ 160) × 100 = 75%
Industry benchmarks:
- Large law firm associate: 1,800–2,200 billable hours/year
- Average lawyer: 1,500–1,800 billable hours/year
- Target utilization rate (consulting): 75–85%
Realization rate: Realization % = (Amount Collected ÷ Amount Billed) × 100 Not every hour billed is paid — write-offs, discounts, and non-payment reduce actual collected revenue. Industry average realization: 85–92%.