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What is Billable hours?

Billable hours are the hours you can actually charge a client — as opposed to admin, marketing, and downtime. A full-time freelancer might work 40 hours but bill only 20–25. Knowing your real billable ratio is what turns a salary target into a sustainable hourly rate.

In practice

A consultant works 45 hours in a week but spends 15 on proposals and bookkeeping: 30 billable hours x $150 = $4,500 of revenue for 45 hours of work.

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Frequently asked questions

What's a typical billable ratio?

50–70% for freelancers; 75%+ is excellent. If yours is under 40%, you're either underpricing or drowning in admin — fix the admin first.

How do I track billable hours?

A simple timesheet — date, client, task, hours — logged daily. Memory is unreliable by Friday; the log is your invoice's evidence.

Should I bill for quick calls and emails?

Set a policy and state it: many freelancers bill a 15-minute minimum or bundle comms into the project fee. The worst option is no policy.