ClockoutWhat is non-billable hours?
Non-billable hours are work hours spent on activities that cannot be charged to a client, such as administrative tasks, marketing, invoicing, and professional development.
Non-Billable Hours explained
Non-billable time is the hidden tax on every freelance practice. Common non-billable activities: invoicing and billing cleanup, email and scheduling, sales calls and proposals, accounting and bookkeeping, marketing and networking, professional development. The average freelancer spends 36% of their time on non-billable admin. Reducing this percentage directly increases revenue without finding new clients.
Example
A freelancer works 40 hours per week. 15 hours are non-billable (invoicing: 3 hrs, email: 4 hrs, sales: 3 hrs, admin: 5 hrs). At a $100/hour rate, those 15 non-billable hours represent $6,500/month in opportunity cost.
How this connects to Clockout
Clockout reduces non-billable invoicing time by generating invoice drafts from tracked sessions. Automated reminders eliminate manual follow-up. The result: more of your week stays billable.
Related terms
Learn more
Billable Hours
Billable hours are the hours a service provider spends on work that can be charged to a client, as opposed to non-billable administrative or internal time.
Utilization Rate
Utilization rate is the percentage of total work hours that are billable. It measures how much of your work week generates revenue versus administrative overhead.
Effective Hourly Rate
Your effective hourly rate is your total revenue divided by total hours worked (including non-billable time), showing what you actually earn per hour of work.
Questions, answered
Frequently asked questions
What is non-billable hours?
Non-billable hours are work hours spent on activities that cannot be charged to a client, such as administrative tasks, marketing, invoicing, and professional development.
Why does non-billable hours matter for freelancers?
Clockout reduces non-billable invoicing time by generating invoice drafts from tracked sessions. Automated reminders eliminate manual follow-up. The result: more of your week stays billable.
From definition to workflow
Track time, send invoices, get paid.
Clockout connects time tracking, invoicing, and payment reminders in one workflow. Free plan available.