Free Hourly Invoice Template

When to use an hourly invoice template

Time-based billing is the norm in software development, engineering, legal services, and agency work. An hourly invoice template is optimized for engagements where the deliverable is time itself: you log hours, you invoice hours. The key distinction from a basic invoice is the ability to handle multiple billing rates on the same document — senior engineer hours at one rate, junior hours at another, project management at a third.

This template is particularly useful for small development agencies or consulting teams billing a single client for work that spans multiple contributors. Instead of sending three separate invoices — one per person or role — you consolidate everything into one document with clearly labeled rows. The client gets a complete picture of where their budget went, and you get one approval cycle instead of three.

What's included

Multiple time-based line items at different rates, clear hour × rate = amount formatting, and Net 30 terms typical for B2B time billing.

• Multiple rate tiers: different billing rates per role or contributor on the same invoice
• Hour × rate calculation: quantity is hours, rate is hourly price — amount is automatic
• Net 30 default: standard for B2B time billing; change to Net 14 for shorter engagements
• Tax-ready: 10% tax pre-filled; adjust to your local rate or set to zero
• Notes field: summarize the billing period or reference a time-tracking report

How to customize this template

Each row represents a billable role or category of work. In the Quantity field, enter the total hours for that role during the billing period. In the Rate field, enter the agreed hourly rate. The Amount column calculates instantly. Add as many rows as you need — up to 20 line items are supported. If you have a time-tracking tool (Harvest, Toggl, Clockify), you can paste the period totals directly from your report. Once the line items are set, verify the billing period dates in the Notes field and download. For recurring monthly engagements, save your browser session and update the hours each month before downloading.

Best practices for hourly billing transparency

Clients who approve hourly invoices without a detailed breakdown are rare — most will want to understand where the hours went before signing off on payment. The best hourly invoices pre-empt that question. Label each row with the role and the period ("Senior engineer — March 2026") rather than just the category. If you have a detailed time log, attach it as a separate document and reference it in the Notes field. The invoice itself does not need to list every task — that is what the time log is for. The invoice just needs to be clear enough that the client can reconcile the total against what they expected. Disputes over hourly invoices almost always trace back to ambiguous descriptions or hours that differ from what the client thought was authorized.