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.