Use this free hourly invoice template for billable time, freelance hourly work, consulting hours, development sprints, and remote contract work. Track hours, set your rate, and generate a PDF.
An hourly invoice should clearly show the hours worked, the rate per hour, and the total amount. Clients need to see enough detail to approve the invoice without asking follow-up questions.
Your business name, email, and address
Client name, billing contact, and client address
Invoice number, issue date, due date
Line items with service description, hours worked, hourly rate
Subtotal, tax, discount if relevant, and final total
Payment terms and payment details
Hourly invoice examples
Development: "API integration and bug fixes, 18 hours at $95/hr"
Consulting: "Strategy session, 3 hours at $250/hr"
Design: "UI mockups and revision rounds, 8 hours at $75/hr"
Tracking billable hours
Use a time tracker, spreadsheet, or project management tool to log hours daily. Round consistently (to the nearest 0.25 or 0.5 hour) and describe what was done in each time block.
When to use hourly billing vs fixed price
Hourly billing works best when the scope is uncertain or likely to change. If a project has clear deliverables and a fixed scope, a flat-rate invoice may be simpler. Many freelancers use a hybrid approach: fixed price for defined phases, hourly for discovery, revisions, or out-of-scope work.
For ongoing relationships, consider switching to a retainer agreement once the work pattern stabilizes. Retainers simplify billing and provide predictable income. You can still track hours internally to ensure the retainer covers your time.
Hourly rate calculation methods
Three common approaches to setting your hourly rate:
Market-based: Research what peers in your field and region charge. Adjust for your experience and specialization.
Cost-plus: Calculate your desired annual income, add taxes and overhead, then divide by billable hours (typically 1,000-1,500 per year).
Value-based: Estimate the value your work creates for the client and price accordingly, then convert to an hourly rate for invoicing.
Whichever method you choose, review your rates at least once a year and adjust for inflation, new skills, and market demand.
Most freelancers round to the nearest 0.25 or 0.5 hour. Pick a rounding method and use it consistently so clients know what to expect.
Can I mix hourly and fixed-price items?
Yes. InvoiceCraft supports mixed line items. Add one line for hourly work and another for a fixed-price deliverable on the same invoice.
What hourly rate should I charge?
Research rates for your skill and region. Consider your experience, project complexity, and whether the client is ongoing. Many freelancers also account for taxes and non-billable time.
Ready to create your invoice?
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