Sheridan Interactive Multimedia | Project Management 1

Determining Billable Hours

Billable hours are simply the hours you bill toward a project, client or contract. In return you charge or bill your hours to the client for the work done.

1. Total annual work hours:

Working 40 hours per week times 50 weeks per year for a total of 2,000 billable hours.

Note: A year is 52 weeks, but consider 2 weeks lost due to vacation, sick time, holidays or no work.

2. Total annual non-productive hours:

Usually considered to be 20% and 40%.

Note: For new businesses or start ups, the range is approximately 40%. (2,000 times 40% = 800)

Billable hours = Annual work hours - non-productive hours

2,000 - 800 = 1,200 hours.

If you bill at a rate of $40 an hour: 1,200 x $40 = $48,000 in total billables.

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Interactive Multimedia ~ School of Applied Engineering and Computing Sciences ~ Sheridan