1. What is the Billable Amount Calculation?

The Billable Amount calculation determines the total fee for attorney services based on hours worked and the hourly rate. It's a fundamental calculation in legal billing and time tracking.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Hours \) — Billable hours worked
• \( Rate \) — Hourly rate in USD

Explanation: The calculation multiplies the number of billable hours by the attorney's hourly rate to determine the total fee.

3. Importance of Billable Hours Tracking

Details: Accurate tracking of billable hours is essential for law firm profitability, client billing transparency, and attorney productivity measurement.

4. Using the Calculator

Tips: Enter billable hours (can include fractions of an hour) and the hourly rate. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How precise should time tracking be?
A: Most firms track time in 6-minute (0.1 hour) increments, though some use smaller increments for more precise billing.

Q2: Should travel time be billable?
A: This depends on firm policy and client agreements. Some firms bill travel time at a reduced rate.

Q3: How do I account for different rates for different tasks?
A: For multiple rates, calculate each task separately and sum the totals. This calculator handles single-rate scenarios.

Q4: What about contingency fees or flat fees?
A: This calculator is for hourly billing only. Contingency and flat fee arrangements require different calculations.

Q5: How do I account for write-offs or discounts?
A: Apply any adjustments after calculating the base billable amount shown here.