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Finance Calculators

Consulting Rate Calculator

Calculate the hourly rate you need to charge as an independent consultant to hit your income goal after expenses and non-billable time.

%
Hourly rate to charge
Total billable hours per year
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About the Consulting Rate Calculator

Independent consultants can't bill every hour of the work week — time is lost to admin, marketing, and unpaid downtime — so the hourly rate has to cover income goals and expenses using only the hours that are actually billable.

Formula: Hourly Rate = [(Desired Income + Business Expenses) × (1 + Profit Margin)] ÷ (Billable Hours per Week × Weeks Worked per Year)

Most consultants bill well under 40 hours per week once sales, admin, and vacation are factored in — using a realistic billable-hours estimate is the single biggest lever in getting this rate right.

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