Consulting Rate Calculator

How consulting rates differ from salary

Consulting rates need to cover income, expenses, reserve and limited billable capacity. They also often price expertise, responsibility and speed, not only the time spent.

If you are moving from an employee role, the Salary to Freelance Rate Calculator is a useful companion because it starts from salary and benefits instead of a consulting revenue target.

Hourly vs day rate

The day rate is calculated from the hourly rate and your chosen hours per day. If your consulting days are shorter or longer than eight hours, make that assumption visible in the input.

Consulting retainers

The retainer floor uses reserved monthly hours multiplied by the calculated hourly rate. For more nuanced retainer pricing with premiums and discounts, use the Freelance Retainer Calculator.

Billable capacity

Annual billable hours are working weeks multiplied by billable hours per week. If billable capacity changes, the sustainable rate changes quickly.

Pricing for expertise vs time

This calculator gives a sustainable floor. Senior specialists may charge above the floor because outcomes, risk reduction and scarce expertise matter.

Once you have an hourly or day-rate floor, the Freelance Project Price Calculator can turn that rate into a fixed project quote with expenses and buffer included.

Example

With a $120,000 income target, $20,000 of expenses, 15% reserve, 44 working weeks and 25 billable hours/week, the calculator estimates 1,100 billable hours and an hourly rate of about $150.

FAQ

Can I use this for freelance work?

Yes, but the Freelance Hourly Rate Calculator is more focused on freelance income and utilization planning.

Why include retainer hours?

Retainer pricing depends on reserved capacity. This calculator avoids inventing a universal retainer by asking for the hours/month assumption.

What if my billable hours are zero?

The calculator requires billable hours greater than zero because rates cannot be calculated without billable capacity.