Invoice guide

How to invoice for hourly work

Hourly invoices get questioned more often than fixed-price ones, usually because the hours were not broken down clearly. Here is how to show your time so it holds up.

Updated by the ToolsToHelp.Me team

Hourly invoices tend to draw more questions from clients than a fixed project fee, and it is almost always because the hours were not broken down. A single line that reads "Consulting, 12 hours, $1,200" asks the client to trust a number with no way to check it. A few extra minutes spent breaking that down saves you a much longer email exchange later.

Showing your hours clearly

Give each task or work session its own line on the invoice, rather than one combined total for the billing period. A useful line includes:

  • What the work was. "Homepage revisions" tells the client more than "development."
  • When it happened, if that helps. A date or a short date range next to the description, useful if you bill weekly or monthly.
  • The hours and the rate. Shown separately, so the amount on that line is clearly hours multiplied by rate.

Compare "Design work, 8 hours, $800" with two lines: "Logo concepts, 3 hours at $100" and "Revisions after client feedback, 5 hours at $100." The second version answers the client's question before they ask it.

Rounding your time consistently

Most hourly work does not land on a clean number of hours, so you need a rounding rule and you need to apply it the same way every time.

  • Nearest 15 minutes. Common for consulting and professional services. A 22-minute task rounds to 15 or 30 minutes depending on your rule for the midpoint.
  • Nearest 6 minutes (a tenth of an hour). Common in legal and other billable-hour professions, where time is tracked in tenths.
  • No rounding, billed to the minute. The most precise option, and straightforward if you are tracking time digitally rather than by hand.

Whichever method you use, use decimal hours on the invoice itself, such as 1.5 hours rather than 1 hour 30 minutes, since that is the format that multiplies cleanly against your rate and is what most invoicing and accounting tools expect.

An hourly invoice example

DescriptionHoursRateAmount
Discovery call and project setup1.0$95.00$95.00
Wireframes, homepage and product page3.5$95.00$332.50
Revisions after client feedback2.0$95.00$190.00

Each line stands on its own, so a client reviewing the invoice can match it against what they remember asking for, without needing to call and ask what the total covers.

Turning tracked time into invoice lines

If you log your hours as you work rather than reconstructing them later, the Invoice Generator's time tracking keeps that unbilled time attached to the right client or project. When you are ready to bill, that tracked time converts into invoice lines automatically, with the description, hours and rate carried over, instead of you retyping each entry by hand onto a new invoice.

Creating an hourly invoice

Inside Invoice Generator
Describe the hourly service on a line item, then set quantity and unit price.
Describe the hourly service on a line item, then set quantity and unit price. Open the tool
  1. Track your time as you go, or gather it at billing time. Note the task and duration for each work session.
  2. Open the Invoice Generator at toolstohelp.me/invoice/ and start a new invoice, or convert your unbilled tracked time into invoice lines.
  3. Check each line for hours, rate and description. Round consistently and use decimal hours.
  4. Set your payment terms and due date. See invoice payment terms explained for the common options.
  5. Save the invoice and share the link. Create a free account to save it and download the PDF, or send the link directly to your client.

If your rate changes mid-project

If your hourly rate changed partway through a project, either split the invoice into lines at the old and new rate with the date each applied, or note the change plainly in the invoice. Do not blend two rates into a single average line, since that hides the calculation the client would otherwise be able to check.

Minimum billing increments and short tasks

Some hourly work involves short tasks, such as a quick call or a small fix, that take only a few minutes but still require you to switch context. If you use a minimum billing increment, such as a quarter hour per task, say so in your agreement with the client before you start, and apply it consistently to every short task rather than only when it benefits you. Clients generally accept a stated minimum far more easily than one that appears without warning on an invoice.

Frequently asked questions

How should I show hours on an invoice?

Give each task or work session its own line, with a description, the hours and the rate, rather than one line with a single total for the whole period. A client can approve specific hours much faster than a lump sum they have to take on trust.

What rounding method should I use for hourly time?

Common choices are rounding to the nearest 15 minutes, the nearest 6 minutes, or not rounding at all and billing to the minute. Pick one method and use it consistently, and mention it to new clients so there are no surprises.

Should I bill in decimal hours or hours and minutes?

Decimal hours, such as 1.5 hours instead of 1 hour 30 minutes, are easier to multiply by a rate and are the standard format most invoicing and accounting tools expect.

Can I combine hourly work and a fixed fee on the same invoice?

Yes. Give the fixed-fee item its own line describing the deliverable, and list the hourly work as separate lines with hours and rate, so the client can see how each part of the total was calculated.

Does the Invoice Generator track time for me?

The builder includes time tracking. As you log hours against a client or project, that unbilled time can be converted into invoice lines when you are ready to bill, instead of you retyping it.

One free account for every tool

Try any tool first. When you want to keep your work, a free ToolsToHelp.Me account saves it and signs you in to the QR Code Generator, Invoice Generator, PDF Tools and Credit Building.