Hourly Invoice Form with Tax & Overtime Calculations

Free Hourly Invoice Form (Printable & Excel)An hourly invoice is a simple but essential document for freelancers, contractors, consultants, and small businesses that bill clients by the hour. A good hourly invoice form records time worked, rates, expenses, taxes, and payment terms so you get paid accurately and on time. This article explains what to include in a free hourly invoice form (both printable and Excel), gives practical templates and examples, covers customization tips, and offers best practices to avoid disputes and speed up payment.


Why use a dedicated hourly invoice form?

An hourly invoice form is tailored to time-based billing. It helps you:

  • Clearly show hours worked and hourly rates, so clients understand charges at a glance.
  • Track multiple tasks or projects on one invoice with line-by-line detail.
  • Calculate totals, taxes, and retainers automatically (especially in Excel).
  • Maintain a consistent, professional appearance across clients and projects.

Key elements to include

Every hourly invoice form should contain these core sections:

  • Header: business name or freelancer name, logo (optional), and contact information (email, phone, address).
  • Client details: client’s name, company, billing address, and contact person.
  • Invoice number and date: a unique invoice number and the invoice date. Include a due date or payment terms (e.g., Net 15).
  • Payment details: accepted payment methods (bank transfer, PayPal, check), bank details or payment links, and late fee policy.
  • Hourly line items: date(s) of work, description of the task, hours worked, hourly rate, and line total.
  • Summary totals: subtotal, discounts (if any), taxes, expenses or reimbursements, and final amount due.
  • Notes: project code, PO number, short notes or instructions, and a thank-you line.

Printable vs Excel — pros and cons

Feature Printable (PDF/Word) Excel (or Google Sheets)
Ease of use Great for single use; easy to print Best for calculations and repeating invoices
Automation Manual totals and calculations Automatic formulas (hours × rate, taxes)
Customization Simple layout changes Easily adjustable columns, templates, macros
Record-keeping Good as a paper or PDF record Easy to track invoice numbers, totals, and statuses
Sharing Universally viewable as PDF Editable unless exported to PDF

Simple printable template (structure)

Use this layout in Word or a PDF editor. Keep spacing clear for printing.

  • Header: Your Name / Business Name, Address, Email, Phone, Logo
  • Invoice to: Client Name, Company, Address
  • Invoice #: __________ Invoice Date: __________ Due Date: __________
  • Table with columns: Date | Description | Hours | Rate | Line Total
  • Subtotal: __________
  • Tax (X%): __________
  • Expenses / Reimbursements: __________
  • Total Due: __________
  • Payment instructions / Notes: ______________________________________

Excel template (with formulas)

An Excel or Google Sheets version lets you automate sums and reduce errors. Key formulas:

  • Line Total (per row): = Hours * Rate
  • Subtotal: = SUM(Line Total range)
  • Tax Amount: = Subtotal * (TaxRate cell)
  • Total Due: = Subtotal + TaxAmount + Expenses – Discounts

Example layout (columns A–F):

A: Date B: Description C: Hours D: Rate E: Line Total -> =C2*D2 

Use a cell for Tax Rate (e.g., 0.07) and reference it for the Tax Amount formula.


Advanced Excel tips

  • Add a hidden cell for Invoice Number that increments: =IF(A2<>“”, MAX(PreviousInvoiceNumbers)+1, “”)
  • Protect cells with formulas to prevent accidental editing.
  • Use data validation for the Rate or Hours columns to prevent non-numeric entries.
  • Create a separate “Invoice Log” sheet to track sent invoices, payment status, and dates paid.
  • Use conditional formatting to highlight overdue invoices (Due Date < TODAY()).
  • Add a printable page layout with margins set for one-page invoices.

Example hourly invoice (text)

Invoice #: 2025-001
Invoice Date: 2025-09-01
Due Date: 2025-09-15

Bill To: Acme Corp. — 123 Client St., City, Country

Line items:

  • 2025-08-25 — Website consultation — 3.5 hrs × \(60/hr = \)210.00
  • 2025-08-26 — Content editing — 2.0 hrs × \(50/hr = \)100.00

Subtotal: \(310.00 Tax (8%): \)24.80
Total Due: $334.80

Payment: Bank transfer to Account Name, IBAN/Account Number / PayPal: [email protected]


Customization ideas

  • Add project codes or client PO numbers for corporate clients.
  • Include hourly overtime rates or separate columns for regular vs overtime hours.
  • Provide a summary section for hours by task or by week if work spans many days.
  • Localize tax calculations or include VAT/GST fields where required.
  • Offer multiple currency formatting if you bill international clients.

Best practices to get paid faster

  • Send invoices promptly after finishing work or on a set schedule (weekly/biweekly/monthly).
  • Use clear, simple descriptions so approvers can match work to their records.
  • Include a clear due date and preferred payment methods.
  • Follow up politely 3–7 days after a missed due date with a reminder invoice.
  • Consider invoices with “Pay Now” links (PayPal, Stripe) to reduce friction.

  • Keep copies of all invoices for your accounting records; most jurisdictions require retention for several years.
  • If you’re registered for VAT/GST, include your tax ID and the client’s tax ID if required.
  • When working internationally, clarify who’s responsible for transaction fees or currency conversion.

Where to get free templates

  • Many office-suite templates (Word, Excel) and online template libraries offer free printable and spreadsheet invoice forms. Choose one that matches your branding and the level of automation you need.

Quick checklist before sending an invoice

  • [ ] Invoice number and date present
  • [ ] Client name and billing address correct
  • [ ] All hours, rates, and line totals double-checked
  • [ ] Tax and expenses applied correctly
  • [ ] Payment instructions included
  • [ ] Attach supporting timesheets or receipts if requested

Free hourly invoice forms—printable or in Excel—save time, reduce billing errors, and project professionalism. Choose the format that fits your workflow: printable for simple one-offs, Excel/Sheets for repeat billing and automation.

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