Hourly Invoice Template: Bill by the Hour Correctly
Hourly billing requires detailed time records on your invoice. Vague hourly invoices get disputed and delayed.
Hourly Invoice Format
| Date | Description | Hours | Rate | Amount |
|---|---|---|---|---|
| May 20 | API development | 6.0 | $95 | $570 |
| May 21 | Code review | 2.5 | $95 | $237.50 |
Time Rounding Policies
Common policies: round to nearest 6 minutes (0.1 hr) or 15 minutes (0.25 hr). State your rounding policy in your contract.
Minimum Billable Increments
Many consultants bill in 15-minute or 30-minute minimums. Example: a 10-minute call bills as 15 minutes.
Include a Time Summary
Show total hours and blended rate at the bottom. Attach detailed timesheet as appendix for transparency on large projects.
Hourly vs Retainer Billing
On retainer, show hours used vs. remaining: "Retainer: 20 hrs — Used: 14 hrs — Remaining: 6 hrs — Overage: 0 hrs"
Create Hourly Invoices
Generate hourly invoices with line items — add date, description, hours, rate, and auto-calculate totals.