Outcome

Billable hours and the margin they earn

Every hour logged costs the same; only the billable ones earn. Work out your billable share and the margin your hours leave.

Work it out with your numbers

The figures below are a worked example. Change any of them: nothing you type is sent or stored.

What it comes to

Margin for the month
+24 800 €
Billable share
71.9%
Margin on revenue
+27%

How the figure is calculated

In words
Billable hours times the rate is the revenue; every logged hour times its cost is the cost. The difference is the margin, and billable hours over logged hours is the billable share.
In symbols
  • Margin for the month = B × R − T × C
  • Billable share = B ÷ T
  • Margin on revenue = (B × R − T × C) ÷ (B × R)
With your numbers
  • 1 150 h × 80 € − 1 600 h × 42 € = 24 800 €
  • 1 150 h ÷ 1 600 h = 71.9%

Assumptions

  • Every logged hour is paid for, billable or not, so cost uses all of them.
  • Billable hours cannot be more than the hours logged.

How Flowtly measures this

  1. 1Time is logged against projects with approval, and each entry is priced at the person’s billing rate.
  2. 2Actuals shows billable utilisation per person, week by week, and where the hours went.Read the guide
  3. 3Profitability can be read by team, client or business unit, so a low billable share shows where it comes from.

See time tracking

The team costs over time tab of a project: a chart of team member cost and a table giving each team member a cost for each month, in euro.
Open a project’s financials: everyone who logged time appears with what their hours cost, month by month.

Measure it on your own data

Start a 14-day trial and load a month of your own hours, or book a demo and we will walk through it with you.

Start free trialBook a demo

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