Question 1

What are consulting fees?

Accepted Answer

Consulting fees are the prices consultants charge clients for professional services. They’re usually based on your expertise, the project scope, your operating costs, and your income goals. Common pricing models include hourly, daily, project-based, retainers, and value-based fees.

Question 2

How do I calculate billable days?

Accepted Answer

Billable days = Weekdays − (Holidays + Sick days + Non-client work days). Non-client days include admin, marketing, sales, training, and internal work that is not billed to a client.

Question 3

How do you calculate a daily consulting rate?

Accepted Answer

Daily billable rate = (Target income + Annual operating costs) ÷ Billable days. This gives a minimum daily rate to cover costs and hit your income target.

Question 4

How do you calculate an hourly consulting rate?

Accepted Answer

Hourly rate = Daily billable rate ÷ Working hours per day. For example, if your daily rate is $800 and you work 8 billable hours, your hourly rate is $100.

Question 5

What should be included in annual operating costs?

Accepted Answer

Operating costs typically include marketing, software subscriptions, equipment, training, insurance, professional fees, office expenses, rent, and supplies. If you’re running as a business, you may also include accounting, legal, and compliance costs.

Question 6

Why does a rate based on income and costs matter?

Accepted Answer

A rate based on income goals and costs helps ensure your consulting business is sustainable. If your pricing doesn’t cover non-billable time and operating costs, you may work a lot and still under-earn.

Question 7

Can I use this calculator if I charge per project?

Accepted Answer

Yes. Use your average project value and the calculator will estimate how many projects per year you may need to hit your revenue target. You can then adjust pricing or project scope accordingly.

Question 8

Should I review my consulting fees regularly?

Accepted Answer

Yes. Revisit your fees when your experience grows, your costs change, market rates shift, or inflation increases. Regular updates help keep your rates aligned with the value you provide.

Consulting Fees Calculator

Billable days a year

Annual operating costs

Project size and target income

Results

How to Calculate Consulting Fees

Billable Days Formula

Daily Rate Formula

Hourly Rate Formula

Consulting Fees Example

Step 1: Billable days

Step 2: Rates

Frequently Asked Questions

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