Turn logged hours into a billable amount, with an overtime block for work billed above your standard rate.
62.5h × 85 = 5,312.5 + overtime 6h × 85 × 1.5x = 765 → 6,077.5Overtime is billed on top of the regular block at the multiplier you set. When hours are split like this, list them as two separate invoice lines — one per rate — so the client can reconcile without querying the total.
This shows the billable total only. Sales tax or VAT is applied on top where applicable, and time-tracking rounding rules (to the nearest 6 minutes or quarter hour) are set by your contract.
Hourly billing is the simplest model to explain and the easiest to dispute, because the client can always ask how the hours were arrived at. The defence is a timesheet that shows dates, start and end times, and the task for each entry — then an invoice that totals those entries without inventing new numbers.
Decide your rounding rule before you bill. Quarter-hour rounding is the most common, six-minute rounding is standard in legal work, and some contracts require exact minutes. Whichever you choose, state it in the contract, because rounding in your favour without disclosing it is a fast route to a disputed invoice.
Overtime is where hourly billing gets contentious. If the contract does not name an overtime rate, you are on weak ground charging one after the fact. Build it into the terms — time and a half is the usual starting point for work beyond standard hours or on weekends.
When the hour count is agreed, check the effective rate against your target. A freelancer billing 40 hours a week at a headline rate can still be under-earning, because only a share of real working time is billable at all.
Invoice the agreed rate multiplied by the hours worked, with a timesheet attached or summarised. Split regular and overtime into separate lines when different rates apply, so the arithmetic on the invoice is self-evident.
Round to whatever unit your contract specifies — the nearest quarter hour is the most common, six-minute increments are standard for legal work. Apply it consistently in both directions and state the rule on the invoice.
Time and a half is the usual commercial default, and double time for holidays or weekends is common. The rate has to be agreed before the work starts; charging it retroactively without a clause is rarely enforceable.
Tax depends on the service and the jurisdiction, not on the billing model. Services to consumers are taxable in many places, B2B services across borders often fall under the reverse charge. Add the appropriate tax after the billable total.