Back into an hourly or daily rate from a target income.
Target income is divided by the hours actually available to charge, after discounting non-billable time. Ignoring non-billable time makes consultants underprice, since only part of the working week is invoiceable.
Consulting Rate
Rate = target income / (billable weeks x hours/week x (1 - non-billable))
Rate = target income / (billable weeks x hours/week x (1 - non-billable)) Target income is divided by the hours actually available to charge, after discounting non-billable time.
Ignoring non-billable time makes consultants underprice, since only part of the working week is invoiceable.
This calculator takes 4 inputs: Target annual income, Billable weeks, Billable hours / week, Non-billable share. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.