Question

How do you calculate percentage of time billed to time incurred?

Answer 1

In some contracts, billing is made to the client based on the hours which are utilised on the project. Generally, hourly rate is used for this purpose. For example , per hour rate is $75. Now, the contractor incurred 50 hours in a week on the project. Out of this 50 hours, he utilised 40 hours on the project.

Now based on this 40 hours, bill can be given to the client. These are billable hours. And 10 hours are non billable.

To calculate percentage of time billed to time incurred is =

(Time billed / total time incurred) × 100

(40 hours / 50 hours) × 100

= 80%