# Consulting Fees Calculator (Day Rate and Hourly Rate)

URL: https://speedycalculator.com/calculators/finance/consulting-fees/
Last updated: 2026-10-25

> The consulting fees calculator works out the daily and hourly rate a freelancer or consultant needs to charge to reach a target income, after operating costs and non-billable time such as holidays, sick days, admin and sales.

## Inputs

- Target income (before tax, per year)
- Operating costs (per year)
- Weekdays in a year
- Holidays and vacation days
- Sick days
- Non-client days (admin, sales, training)
- Billable hours per day
- Profit margin on top (%)

## Results

- Billable days per year
- Revenue required per year
- Day rate
- Hourly rate
- Utilisation (billable share of weekdays)

## Formula

```
Billable days = working days − holidays, sick and non-client days
Required revenue = target income + operating costs
Day rate = required revenue ÷ billable days; hourly rate = day rate ÷ hours per day
```

## Explanation

Employees are paid for every working day, but consultants only earn on billable days – often 60–70% of the year. Your rate has to cover your salary, business costs and the unbilled time spent on marketing, admin and training.

### How to use the Consulting Fees Calculator

- **Target income (before tax, per year)**
- **Operating costs (per year)**
- **Weekdays in a year**
- **Holidays and vacation days**
- **Sick days**
- **Non-client days (admin, sales, training)**
- **Billable hours per day**
- **Profit margin on top**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter your target income, yearly operating costs, working days, days off and non-client days, and billable hours per day.

### Tips

- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.

### Common mistakes to avoid

- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.

### Inputs explained

FieldWhat to enterTarget income (before tax, per year)Amount in your currencyOperating costs (per year)Amount in your currencyWeekdays in a yearChoose one: 260, 261, 262Holidays and vacation daysA numberSick daysA numberNon-client days (admin, sales, training)A numberBillable hours per dayA numberProfit margin on topIn %

### What each result means

- **Billable days per year** = [Weekdays in a year] - [Holidays and vacation days] - [Sick days] - [Non-client days (admin, sales, training)]
- **Revenue required per year** = ([Target income (before tax, per year)] + [Operating costs (per year)])×(1 + [Profit margin on top]÷100)
- **Day rate** = [Revenue required per year]÷[Billable days per year]
- **Hourly rate** = [Day rate]÷[Billable hours per day]
- **Utilisation (billable share of weekdays)** = [Billable days per year]÷[Weekdays in a year]×100

### Example values

How the main result changes when **Target income** changes and everything else stays at the example values above:

Target income (before tax, per year)Day rate45,000354.8467,500487.990,000620.97112,500754.03135,000887.1180,0001,153.23

## Worked example

Inputs — Target income (before tax, per year): $90,000; Operating costs (per year): $15,000; Weekdays in a year: 261; Holidays and vacation days: 30; Sick days: 5; Non-client days (admin, sales, training): 40; Billable hours per day: 7; Profit margin on top: 10 %.

Results — Billable days per year = 186; Revenue required per year = $115,500.00; **Day rate = $620.97**; Hourly rate = $88.71; Utilisation (billable share of weekdays) = 71.26 %.

## FAQ

**How do I set my consulting rate?**
Divide the revenue you need by realistic billable days, not 260 working days.

**How many days are billable?**
Many consultants bill 120–180 days a year.

**Should I charge daily or hourly?**
Day rates reward efficiency and are simpler to invoice; hourly suits short or unpredictable work.

**What formula does the Consulting Fees Calculator use?**
Billable days = working days − holidays, sick and non-client days.