Hourly invoice template for time-based billing
Enter each task or week with its hours (2.5 works) and rate, and the line totals and grand total calculate as you type. Download a PDF, or the editable Excel or Word version.
What the hourly invoice starts with
Each version opens in the online maker with its own line items and payment terms, and downloads as an editable Excel or Word file. Example amounts are hypothetical, not market rates.
Fill in your hourly invoice
Edit any line, set your tax rate (0% is fine) and download a PDF. Line amounts, tax and the balance due calculate as you type.
Tax starts at 0%. Enter the rate that applies to you, or leave it at 0 if you do not charge sales tax or VAT.
For example a deposit. The PDF then shows the balance due.
- Nothing is saved on our side. Download the PDF before you leave the page.
- Amounts print with a $ sign. If you bill in another currency, say so in the notes.
- Prefer to edit offline? Download this starting point as Excel (.xlsx) or Word (.docx).
An hourly invoice bills time: hours per task multiplied by your rate, for a stated billing period. Clients question hourly invoices more than fixed fees, so the detail matters. The sections below cover what to include, how to round time, and how to avoid surprises on the total.
What the hourly invoice covers
What you can do with this template, and what it does not do.
Decimal hours as quantity
Enter hours as the quantity, including part hours such as 2.5 or 3.25, and your hourly rate as the rate. The line amount is rounded to the cent.
One line per task or week
Add as many lines as you need, one per task, project or week, so the client can see what each block of time was for.
Different rates per line
Bill strategy, design and support at different rates by giving each its own line.
Approved extra hours on their own line
Hours beyond an estimate or budget go on a separate line with the approval date.
Billing period and time log in the notes
State the period covered (for example, 1-15 March) and link or attach your time log if the client asked for one.
PDF, Excel or Word
Download the finished invoice as a PDF, or download the hourly template as an editable .xlsx or .docx.
How to fill in your hourly invoice
- Business Information: Your name/company, address, phone, email, and tax ID.
- Client information: Client name, company, billing address, and contact details.
- Invoice Number & Date: Sequential number and issue date.
- Billing Period: Date range for the work being invoiced.
- Time Log: Detailed breakdown: date, task description, hours worked.
- Hourly Rate: Your agreed-upon rate per hour.
- Hours Summary: Total hours worked during the period.
- Calculations: Hours × rate, subtotal, tax, total due.
- Payment terms: Due date, payment methods, and late fee policy.
- Project Reference: Project name or PO number for client tracking.
- Track Time Accurately: Use time-tracking software. Log time daily, not from memory.
- Be Specific: Describe what you worked on. "Development work" is vague; "Fixed checkout bug" is clear.
- Invoice Regularly: Bill weekly or bi-weekly. Long gaps hurt cash flow and surprise clients.
- Set Clear Rates: Agree on rates upfront. Document in contract or engagement letter.
- Round Appropriately: Bill in consistent increments (6-minute, 15-minute, etc.). Be fair.
- Provide Time Logs: Attach detailed time records. Transparency prevents disputes.
- Communicate Overages: If approaching budget limits, notify client before continuing.
- Document Approval: Have client approve hours before invoicing when possible.
- Separate Projects: If working on multiple projects, show time per project.
- Review Before Sending: Check time entries and calculations for accuracy.
Hourly rates vary by field, seniority and market, so work out your own floor before you look at what others charge.
Find your minimum rate:
- Yearly costs (salary target, tools, insurance, overheads)
- Divided by billable hours you can realistically sell in a year
- Example (hypothetical): $90,000 / 1,100 billable hours = about $82 per hour before profit
Time increments:
- 6 minutes (0.1 hour), common in legal billing
- 15 minutes (0.25 hour), easy to track by hand
- 30 minutes (0.5 hour), simple but coarse
Rate types you can show as separate lines:
- Standard rate
- Rush or out-of-hours rate
- Different rates by role or task
Adjustments to agree in the contract:
- Annual rate review
- Discounted rate for pre-paid hour blocks
- Budget cap with a warning before it is reached
Agree these in the contract before the first invoice. The options below are common choices, not rules.
Billing frequency:
- Weekly or every two weeks for active projects
- Monthly for steady, ongoing work
- At milestones, if hours are capped per phase
When payment is due:
- Net 15 or Net 30 from the invoice date
- Due on receipt for small amounts
Prepaid hour blocks:
- The client pays for a block of hours in advance
- Say whether unused hours roll over or expire
- Invoice the next block when the current one runs out
Budget control:
- Estimate total hours upfront
- Tell the client before you pass the estimate
- Get approval in writing before going over
Late payment:
- State your late fee or interest only if your contract includes one
- Say whether work pauses while an invoice is overdue
- Vague Time Entries: Be specific about tasks. "Worked on project" tells clients nothing.
- Delayed Tracking: Log time as you work. Reconstructing from memory is inaccurate.
- Inconsistent Rounding: Use consistent increments. Don't round up excessively.
- No Rate Agreement: Always have written rate confirmation before starting work.
- Infrequent Billing: Bill regularly. Monthly surprises hurt client relationships.
- Missing Time Records: Provide detailed logs. Clients have a right to see what they're paying for.
- Budget Surprises: Communicate proactively when approaching or exceeding estimates.
- No Project Reference: Include project names or codes for clients with multiple engagements.
- Calculation Errors: Double-check hours × rate. Simple math errors hurt credibility.
- Missing Terms: Include payment terms, due date, and methods on every invoice.
Hourly invoice: frequently asked questions
Related resources
Guides and articles
Related invoice templates
Explore more professional invoice templates for different industries
Retainer invoice template
Retainer invoice template for monthly client billing: the retainer fee, the period it covers, hours or deliverables used, rollover, and any out-of-scope work on its own line.
Consulting invoice template
Consulting invoice template for hourly advisory work and fixed-fee engagements: discovery, advisory and deliverable lines, approved expenses, and payment terms.
Agency invoice template
Agency invoice template for project milestones and monthly packages, plus a solo freelancer version: approved extra work, pass-through costs and payment terms on separate lines.
PDF invoice template
Free PDF invoice template: fill in the invoice online and download a PDF on US Letter or A4, or print a blank invoice with a remittance slip. Itemized, Net 30 and blank versions.
Turn tracked time into invoices
On the AgencyPro Pro plan, you track time per client and run a timesheet for the billing period to build the invoice from. Invoices go out with a Stripe or PayPal payment link. Pro is $79/mo for one seat.