GUIDE

How many billable hours are there really in a work year?

By Ryder Wishart — years on the tools, then time tracking in a contractor’s back office · Updated 2026-06-08

The 2,080-Hour Illusion

On paper, a 40-hour work week equals 2,080 hours per year. This number is a mathematical myth for solo tradespeople because it assumes every minute of your life is spent performing billable tasks.

In reality, this figure includes holidays, sick days, and time spent on administrative tasks. Relying on this number to calculate your annual revenue will almost always lead to an overestimation of your actual income.

Accounting for 'Leakage'

For a solo professional, 'leakage' is the time lost to non-billable activities like driving to suppliers, picking up parts, or stuck in traffic. This time is often invisible but significantly impacts your bottom line.

If you don't distinguish between 'trips' and 'stops,' you might mistake driving time for billable work, leading to inaccurate job pricing and missed profit margins.

Calculating True Capacity

A realistic billable target for a solo tradesperson often falls between 1,200 and 1,600 hours per year. To find your specific number, you must track how much time you actually spend on-site versus in transit.

By reviewing your actual job site durations, you can build a more accurate budget. This allows you to price your services based on your real-world availability rather than a theoretical 40-hour week.

FAQ

Does travel time count toward my billable hours?

It depends on your pricing model, but tracking it separately is essential to ensure you aren't losing money on transit.

How can I find my actual annual billable hours?

By using GPS-based tracking to separate your time spent at job sites from your time spent driving between them.

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Last updated 2026-06-08.