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How to Calculate Your Billable Hours with Toggl Track

Billables Made Easy

For people working in professions where their clients are billed by the hour, keeping an accurate log on the time spent on clients can mean the difference between success and failure. Rightsizing your fees is key, as unreasonably high prices can drive away customers, while selling your services too cheap can crush your resources.

In Toggl Track Starter, we’ve made it easy for you to separate your billable hours from unbilled work, and to keep your records accurate to the second.

Reporting timesheet data

1. Separating billable hours from unpaid work

Not all work time is billable. For example, when sending invoices to your clients, you might want to exclude the time spent answering their emails.

In Toggl Track, you can choose if you want a specific time entry to be billable or not when you start it. In the web app, simply click on the dollar sign to mark it as billable. Similarly, you can make earlier entries billable.

Separating billable hours from unpaid work

You can also create different projects and determine which of their subtasks should be billable. Time tracked under the billable projects or their billable tasks will automatically be added up as billable time.

2. Calculating rates for billable hours

If you’re charging different rates from different clients and projects, or if some of your contractors work for higher fees, you will need to use several billable rates. Toggl Track uses a three-level hierarchy to separate different rates. The default hourly rate can be set from the workspace settings page - this is the rate Toggl Track uses to calculate your fees when you're tracking billable time and when no other rates have been applied.

Assigning default billable rate to a workspace

3. Calculating employee billable hours

Team member rates let you assign specific hourly rates for different people working for you.

Assign custom hourly rates to employees

This is useful when you're working with people with a wide variety of skills and professions. For example, developers' time might be considered more expensive than that of copywriters. When you have team member specific rates in place, these will be used instead of your default hourly rate where applicable.

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4. Calculating rates for project-based work

Sometimes you might need to work on a project that is billed differently from your normal fees, requiring you to calculate it's price separately.

To make it easier to separate such probjects from your other billable work, Toggl Track lets you assign a custom hourly rate to any project. What's more, if there are several people working for a project, they can be assigned custom hourly rates of their own. This can be useful for separating the more expensive work from simpler tasks.

Calculating project specific hourly rates

5. Tracking costs in real time

Toggl Track has a powerful integrated reporting system, and all your time is automatically sorted and can be instantly viewed in different reports. This means you don't have to add up your billable hours manually.

Calculating your total billable hours and Toggl Track reports

The reports give you an overview of how much your projects are earning you and how much of your time has been spent on profitable activities, but there is also a Project Dashboard feature, letting you break down projects and their profitability by tasks.

Aside from that, it will also show you if your time spending stays within the limits you’ve set, which makes it easier to catch runaway activities that could cost you a lot of money in the long run.

Sign up for Toggl Track

Start with a free, 30-day trial of Toggl Track Premium–no credit card required. If a paid plan isn't right for you, just continue using Track on our Free plan at the end of the trial.

Prefer a product demo instead?

Teams of 5+ are eligible for a personalized demo to see how Toggl Track can meet your time tracking goals

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