Finance

Consulting Fees Calculator

Calculate your consulting fees based on desired annual income, billable hours, and expenses.

Desired Annual Income ($)

Annual Business Expenses ($)

Weeks Worked Per Year

Billable Hours Per Week

Typically 60-70% of total hours

Self-Employment Tax Rate (%)

Profit Margin Target (%)

Formula:
Total Needed = (Income + Expenses) / (1 − Tax Rate) / (1 − Margin %)
Hourly Rate = Total Needed / (Weeks × Billable Hours)
Daily Rate = Hourly × 8
Monthly Retainer = Hourly × Hours/Month

Setting Your Consulting Rate

Your consulting rate must cover not just your desired salary, but also taxes, benefits, overhead, non-billable time, and a profit margin. The common mistake is charging your previous employee hourly rate — you need 2-3x that as a consultant.

Rate Benchmarks by Field

Field	Hourly Range
Management Consulting	$150-$500+
IT/Tech Consulting	$100-$300
Marketing/Strategy	$100-$250
HR/Organizational	$75-$200
Financial Advisory	$150-$400