How do you convert billable hours?
Asked by: Ms. Hattie Kub I | Last update: September 7, 2025Score: 4.2/5 (19 votes)
- Set an hourly rate. If you charge a single rate for all your services and clients, this step is straightforward. ...
- Track the number of hours worked. ...
- Add up your billable hours. ...
- Multiply your hours worked by your hourly rate. ...
- Add any extra fees or charges.
How to calculate billable hours?
Calculating billable hours is straightforward: you take how much you've worked and multiply it by your hourly rate. But, the complications arise when you charge different fees to different clients, or when you have a diverse team doing differently paid work, and you need to factor in all those different rates.
How many hours is 2000 billable hours?
Now on first glance, being required to work (on average) 2,000 billable hours per year may not seem terrible. After all, forty hours of work per week times fifty working weeks per year works out to exactly 2,000 hours of work per year.
What does 1800 billable hours look like?
To achieve 1,800 billable hours, an associate would work “regular” hours plus an extra 20 minutes Monday through Friday, or work one Saturday each month from 10:00 a.m. until 5:00 p.m. The first option would give an attorney 1,832 billable hours, with a total of 2,430 hours spent “at work” (AKA: including performing ...
How do lawyers count billable hours?
Legal services professionals often rely on email communication to monitor their billable hours. They use emails constantly to manage their cases, with each email having a timestamp. Keeping a record of these means they have an idea of how they spend time with different clients.
Convert Hours & Minutes in Excel to decimals for billable hours by Chris Menard
Why do lawyers bill in 6-minute increments?
There are numerous methods and techniques lawyers can use for time tracking and billing. Some are more laborious and time-consuming than others. Among them, 6-minute increments are a great way to keep track of your time and tasks. A chart with 6-minute increments also helps with calculating and invoicing.
How many billable hours are realistic?
The Goal is Between 1,700 and 2,300 Hours
Most law firms set a yearly billable hour target for their associates. This figure typically ranges between 1,700 and 2,300 hours, forming the average billable hour requirement.
What is the average billable hours for an attorney?
In Philadelphia, Orange County, CA, San Diego, and the San Jose area, most offices required either 1,900 or 1,950 hours; in Miami, most firms required either 1,900 or 2,000 hours.
Are billable hours on top of salary?
In order to be profitable to your firm, you must make enough money from your billable hours not only to cover your salary and overhead, but also to generate revenue for the firm. It's not a complicated equation – the more hours you bill, the more revenue for the firm.
What is the difference between billable hours and hours billed?
billable work: Direct work for a client's project, where you are applying your skill to meet their needs, whereby people would be willing to pay you whatever professional rate you charge. billed work: A subset of billable work for which you are actually paid.
Do lawyers work 9 5?
During the week, many attorneys work additional hours outside of the traditional 9-to-5 business day. The 2022 Legal Trends Report provides deeper insights into lawyer working hours: 86% of lawyers work outside of the typical work day (beginning between 8 a.m. and 9 a.m. and ending between 5 p.m. and 6 p.m.).
How many 8 hour days is 2000 hours?
2000 Hours is 83 Days 8 Hours. Try our Hours to Days Page! Add to My Page!
What is the formula for billable rate?
Use the formula Billable hourly rate = (Total costs / Billable hours) x Profit margin.
How to track billable hours?
You can either manually log the start and end times for each task or use time-tracking software that does it automatically. To calculate total billable hours, sum the time spent on all tasks for a client or project and multiply by your hourly rate to determine the total amount due.
How to annualize billable hours?
How do you calculate annual billable hours? To calculate annual billable hours, subtract non-billable hours from the total work hours in a year. This formula helps determine the amount of time you can actually bill clients over the course of a year and accurately account for all chargeable work.
How many billable hours do lawyers work a week?
Although most lawyers have a regular 40-hour week, a significant percentage of them work more frequently. The average weekly work hours for various types of lawyers are: Lawyers working for large firms: 66 hours per week. Lawyers working for small and medium-sized firms: 42-54 hours per week.
How to increase billable hours?
- Analyze your team's non-billable hours. Tracking non-billable work helps you find places to reduce time spent on those activities that don't bring in revenue. ...
- Bill for all client-related work. Keep an eye on scope creep. ...
- Assign your team's billable work in batches.
Do paralegals get paid for billable hours?
Paralegals can bill for their substantive legal work similarly to attorneys, but typically at lower hourly rates than lawyers. In fact, most paralegals bill hourly and directly to clients. Paralegals billing hourly must know how to log portions of hours worked accurately.
How many billable hours a day is 2000 a year?
For example, if you want to reach a goal of 2,000 hours annually, you would need to bill for roughly 40 hours each week, or eight billable hours a day. You may not work exactly eight hours each day, but this breaks down what you should average in a day, week, and month to reach your annual goal.
Is 1650 billable hours a lot?
For example, if your target is 1650, divide it by 230; that's just under 7.2 hours/ day. It's still a lot of dedicated billable time. Still, it's manageable, and it factors in work-free holiday time, time for professional development and marketing events, and any time worked on weekends provides surplus hours.
Do lawyers get paid based on billable hours?
Why is tracking billable hours for attorneys important? Attorneys do not receive direct compensation based on their billable hours. Nevertheless, the overall performance of a law firm is closely tied to them.
What is .2 in billing?
Convert the total duration to the nearest increment. For an 11-minute phone call and 6-minute billing increments, you round up to 12 minutes or . 2 billable hours.
How to calculate billable hours in Excel?
Using Excel to calculate billable hours
In another column, Subtract the start time from the end time using the formula “=end_time-start_time” to get the duration in decimal format.