Consulting Rate Calculator
Turn a target annual income into an hourly, half-day, day-rate and engagement price for independent consulting work.
How it works
Formulas used
Billable hours = Days/year × Hours/day × Utilization Hourly rate = (Compensation + Overhead) / (1 − Reserve% − Margin%) / Billable hours Day rate = Hourly rate × Billable hours/day 5-day engagement = Day rate × 5 | 10-day engagement = Day rate × 10 Monthly retainer equivalent = Recommended annual revenue / 12
Worked example
$140,000 target compensation, $15,000 overhead, 150 consulting days/year, 6 billable hrs/day, 80% utilization, 10% reserve, 15% margin gives a day rate in the low-to-mid four figures — try the calculator above with your own numbers.
Limitations
This is a planning estimate for your internal break-even and target economics, not a statement of market rates for your specialty.
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Frequently asked questions
How many consulting days per year is realistic?
Many independent consultants land between 120-180 billable days once travel, proposal writing and admin time are subtracted from ~250 working days.
What does the rate multiplier mean?
It shows how many times your day-equivalent hourly rate is above a comparable employee wage — useful context, not a target to hit exactly.