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Consulting Rate Calculator

How much should you charge as a consultant? Enter your income goal, expenses, and working hours — and get your recommended hourly rate, day rate, and project rate instantly. Free, no signup required to see your rate range.

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Most first-time consultants set their rate by guessing — then discount it because they're nervous. The result? They earn 30–50% less than they need to, work harder than their old job, and burn out. This calculator does the math for you, so you price with confidence from day one.

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Consulting Rate Calculator

Enter your numbers and get your recommended hourly, day, and project rates — instantly.

Your recommended rate

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The Pricing Problem

Why most consultants underprice by 30–50%

Most first-time consultants set their rate by asking "what sounds reasonable?" — then discount it further because they're nervous. The result: they work harder than they did as an employee, earn less, and burn out within 18 months. Here's what they're getting wrong.

1

They forget about the overhead they used to get for free

As an employee, your employer covered payroll taxes (7.65%), health insurance ($7K–$20K/year), retirement matching, paid time off, and equipment. As a consultant, you pay all of that yourself — plus software, accounting, and professional insurance. If you don't build these costs into your rate, you're effectively taking a pay cut to go independent.

2

They calculate based on what they earned as an employee

A $150K salary sounds like a lot — but to take home $150K as a consultant, you need to gross $210K+ after taxes, benefits, and business expenses. Consultants who divide their old salary by 2,000 hours arrive at a rate that's 30–40% too low, then wonder why they can't make ends meet.

3

They overestimate how many hours they can actually bill

There are 2,080 working hours in a year, but no consultant bills all of them. Sales calls, proposals, admin, bookkeeping, learning, and non-billable client work eat 30–50% of your time. A realistic consultant bills 1,000–1,400 hours per year — not 2,000.

4

They price to compete instead of pricing to the value they deliver

If a client's problem costs them $500K/year and you can fix it in 40 hours, your rate should reflect the value of the outcome — not the number of hours it took you. Consultants who price by the hour race to the bottom; consultants who price by value earn 3–5x more for the same work.

FAQ

Consulting rate questions, answered

Your hourly rate depends on your target income, business expenses, and realistic billable hours. Most first-time consultants need $150–$300/hour to replace a $120K–$180K salary — because you're covering taxes, benefits, insurance, and non-billable time that an employer used to absorb. Use the calculator above to find your specific number based on your goals.

Know your rate? Now find your niche.

Your rate is only half the equation. The right niche determines whether clients will pay it. Get your niche verdict — 3 positioned offer ideas with pricing and your first quick win — for free.

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