Billable efficiency.

Billable hours efficiency calculator measures consultant/freelancer productivity. 40 worked hours / 25 billable = 62.5% efficiency. 100/hour rate × 25 billable = 2,500/week revenue, 62.50 effective rate per worked hour. Industry standard: 60-70% billable efficiency. Below 50%: business inefficient. Above 80%: burnout risk.

Example: 40 hours worked weekly, 25 billable hours at 100/hour. Efficiency 62.5%. Weekly revenue 2,500. Effective hourly rate (per worked hour) 62.50. Annual revenue: 125,000. Standard for consultants 60-75% billable. Senior consultants/lawyers 50-65% (more business development). Junior staff 70-85% (more execution focus).

Improving billable efficiency: (1) Time tracking (most don't accurately - underestimate by 20%). (2) Reduce admin (delegate, automate, batch). (3) Pricing (raise rates rather than work more hours). (4) Retainer/value-based pricing (fewer billable hours, more revenue). (5) Eliminate non-revenue activities. Consultant rates: junior 40-70/hour, senior 80-150, partner 200-500+. Billable efficiency directly determines income - 10% efficiency improvement = 10% income boost without working more hours.

A worked example

Try the defaults: total hours worked of 40, billable hours of 25, hourly rate of 100. The tool returns 62.50%. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Total Hours Worked, Billable Hours, and Hourly Rate. Frequency and unit price pull the total in different directions. The biggest surprise for most people is how small recurring amounts compound into large annual figures — that's where this calculation earns its keep.

The formula behind this

Efficiency = billable / worked × 100. Effective rate = revenue / total hours. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

When to revisit

Your time isn't priced once. As your rate changes (promotions, side income, efficiency gains), the threshold shifts. Re-run this after any meaningful earnings change so the "outsource vs do-it-yourself" math stays current.

What this doesn't capture

Hour-for-money math misses the tasks you enjoy and the ones that build skill. The number is an efficient-markets view of your time; real decisions about what to do yourself vs outsource should also weigh what you learn and what you enjoy.