Consulting Rate Calculator

Setting your consulting rate requires balancing your income goals with market reality. Many consultants make the mistake of calculating based on desired income alone, forgetting to account for non-billable time, business expenses, and taxes. This calculator helps you determine a rate that covers all your costs while achieving your financial goals.

The key insight is that you can't bill every hour of your work week. Between marketing, administrative tasks, and professional development, most consultants bill 20-30 hours per week at most. Your rate needs to compensate for this unbillable time. Additionally, as an independent consultant, you're responsible for self-employment tax (15.3%), income tax, health insurance, equipment, software, and other business expenses.