Billable Hours
Billable hours are the hours a contractor can invoice clients for actual project work. They exclude time spent on business administration, invoicing, finding new clients, professional development, and gaps between contracts. Most independent contractors bill 1,500-1,800 hours per year (vs. the 2,080 hours in a standard full-time schedule), making each billable hour more valuable.
Example
A contractor working 40 hours/week might bill only 32 hours (80% utilization). Over 48 working weeks, that's 1,536 billable hours — not the 2,080 you'd assume from a salary comparison.
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