Effective billing rate

Know your effective billing rate, not just the rate on the engagement letter.

Keito divides realized revenue by the hours actually worked so you can see the rate each client and project truly returns — after write-offs, non-billable work, and scope drift.

$49 USD
Flat team plan from
0
Per-seat billing surprises
14 days
Trial workspace
app.keito.ai / rates

Rate review

Northgate Consulting

Effective rate

$182/h

Active work

24

Reviewed

91%

Ready to bill

$18.4k

Time captured with context

effective billing rate

Live

Billing review complete

Client and project checked

Done

Invoice evidence ready

Approved summary prepared

Next
01

Built around the work before the invoice

effective billing rate needs more than a timer. The billing record has to keep client, project, approval, and invoice context together before the work reaches finance.

Capture the work while it is fresh

Record billable time by client, project, task, and person so the billing source of truth is created during delivery, not reconstructed at month end.

Review before anything reaches the client

Approve entries, expenses, and budget movement in one place so managers can catch missing context before finance creates the invoice.

Turn approved time into billing evidence

Use the same tracked data for invoices, client summaries, margin reviews, and internal capacity conversations.

02

Effective rate clarity

The rate you quote is rarely the rate you earn

A firm can quote $250 an hour and still earn far less once non-billable work, write-offs, discounts, and scope creep are accounted for. The effective billing rate — realized revenue divided by every hour actually worked on an engagement — is the number that tells you whether a client is genuinely profitable. The problem is that most firms cannot calculate it without manually stitching together a timesheet, an invoice, and a margin assumption. Keito builds the effective rate directly from delivery records: every hour worked is captured with client and project context, billable status and write-offs are tracked during review, and realized revenue is tied back to the same records. The result is an effective rate per client and project that updates as work happens, so you can see which engagements quietly fall below your target rate, which fixed-fee projects have eroded into low-rate work, and where to renegotiate before the next renewal rather than after another loss-making quarter.

Calculate effective billing rate (realized revenue divided by total hours) from reviewed records

Compare quoted rate against effective rate by client, project, and engagement type

Identify fixed-fee and discounted work that has slipped below your target rate

Workflow fit

Effective rate from realized revenue

Keito keeps effective billing rate connected to client, project, billable status, approval, and invoice context before the work reaches finance.

Calculate effective billing rate (realized revenue divided by total hours) from reviewed records

Compare quoted rate against effective rate by client, project, and engagement type

Identify fixed-fee and discounted work that has slipped below your target rate

03

What Keito adds to effective billing rate

Billing-ready time records

Keito keeps time, expenses, approvals, and client context together so the invoice is backed by the same record your team used to deliver the work.

  • Client and project tagging
  • Billable and non-billable separation
  • Approval status before invoice review

Flat pricing for growing teams

Invite the people who capture, review, and explain client work without turning each new contractor or reviewer into another per-seat charge.

  • Solo from $19 USD/month
  • Flat-rate team plans from $49 USD/month
  • Room for finance and delivery reviewers

Project visibility before the invoice

Spot budget drift, missed entries, and low-margin work before the month closes and the client conversation becomes harder.

  • Project budget views
  • Team utilization context
  • Exportable client summaries
04

Compare the workflow

The difference is not just recording time. It is whether the record can support billing, project decisions, and client conversations.

AreaKeitoTypical setup

Effective rate from realized revenue

Keito keeps effective billing rate tied to clients, projects, billable status, approvals, and billing summaries in one workspace.

Typical setups capture time in one tool and rebuild the billing explanation later from exports, comments, or spreadsheet cleanup.

Review before invoicing

Managers review entries before they become invoice evidence, so missing context is fixed internally rather than during a client dispute.

Raw timer exports usually reach finance before delivery leads have confirmed whether the work is billable, complete, or client-ready.

Predictable team pricing

Flat-rate plans let delivery staff, reviewers, contractors, and finance users participate without per-seat pricing friction.

Per-seat time trackers make teams choose between clean billing participation and controlling tool spend.

05

Related solution pages

06

Useful reading

Frequently asked questions

What is the best way to manage effective billing rate?

The best way to manage effective billing rate is to capture work at source, attach it to the right client and project, review it before invoicing, and use the reviewed record as billing evidence. Keito is built around that workflow so time, approvals, and invoice context stay connected.

Can Keito help with effective billing rate?

Yes. Keito helps with effective billing rate by tracking work by client, project, task, person, billable status, and review state, then turning approved records into client-ready summaries. That makes the data useful for billing, profitability, and client reporting rather than just attendance.

How is Keito different from a generic timer for effective billing rate?

Keito is different because it treats time as billing evidence, not just duration. A generic timer records how long something took; Keito records who did the work, where it belongs, whether it was reviewed, and how it should appear in client billing context.

How do you turn effective billing rate into invoice-ready evidence?

Turn effective billing rate into invoice-ready evidence by reviewing every entry for client, project, billable status, approval state, and billing notes before finance creates the invoice. Keito keeps those checks in the same workflow so the client summary is backed by reviewed work, not a late spreadsheet cleanup.

What should a client-ready effective billing rate report include?

A client-ready effective billing rate report should include the client, project, task, contributor, billable status, approval state, and a concise explanation of the work completed. Keito keeps those details connected so reports can answer client questions without exposing internal delivery noise.

03

Start solo.Add people when you need them.

Solo includes 1 licensed user, unlimited AI agents, Mac desktop and iOS apps, Stripe payments, and standard CSV and Excel exports. Pro adds your team. Business adds integrations, planning, advanced reporting, and stronger controls.

Solo

1 licensed user

For independent consultants, freelancers, and small studios running work with AI agents.

$19USD /mo

Start Solo
1 licensed user
Unlimited AI agents
Mac desktop and iOS apps
API access and API keys
Time, expenses, projects, and invoices
Stripe invoice payments
CSV and Excel data export
Most popular

Pro

Team collaboration

For teams that need shared workspaces, approvals, and team-level project visibility.

$49USD /mo

Start Pro
Unlimited licensed users
Everything in Solo
Team management and invites
Timesheet and expense approvals
Team reports and utilization
Per-member billing rates
Manager permissions

Business

Advanced operations

For organizations that need integrations, planning, advanced reporting, and stronger controls.

$199USD /mo

Start Business
Everything in Pro
Xero and QuickBooks
Airtable, calendar, and Jira imports
Planning and capacity
Advanced report exports
Custom roles and SSO
Priority support
Agents are included

AI agents do not require licenses on any plan.

API on every paid plan

Solo, Pro, and Business can use API keys for agent workflows.

Exports on every plan

Solo, Pro, and Business include standard CSV and Excel data export.

Build a cleaner billing record for firm owners, finance leads, and engagement managers who need to know the real per-hour return on each client and project, not the headline rate.

Start with Solo, add people on Pro when you need reviewers or collaborators, and see how Keito turns tracked effort into clearer reports.

Track effective billing rate in Keito