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Consulting Rate

Back into an hourly or daily rate from a target income.

About Consulting Rate

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.

Formula

Consulting Rate

Rate = target income / (billable weeks x hours/week x (1 - non-billable))

non-billable share
Time spent on admin, proposals and downtime

Worked example

With the default values below, Consulting Rate returns Hourly Rate of $127. Change any input above and every figure here is recalculated in your browser.

Inputs used

Target annual income
120,000
Billable weeksminimum 1
45
Billable hours / weekminimum 1
30
Non-billable shareaccepts 0–90 %
30 %

Results

Annual Billable Hours
1,350
Hourly Rate
$127
Daily Rate (8h)
$1,016

Step by step

  1. 1Values used
  2. 2Consulting Rate
  3. 3Hourly Rate= 127
  4. 4Annual Billable Hours= 1,350
  5. 5Daily Rate (8h)= 1,016

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to whole numbers, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Consulting Rate calculated?

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.

Why does Consulting Rate matter?

Ignoring non-billable time makes consultants underprice, since only part of the working week is invoiceable.

What values do I need to enter?

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.

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Consulting Rate – Calculate Hourly Rate | Calcrivo