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
| Field | What to enter |
|---|---|
| Target income (before tax, per year) | Amount in your currency |
| Operating costs (per year) | Amount in your currency |
| Weekdays in a year | Choose one: 260, 261, 262 |
| Holidays and vacation days | A number |
| Sick days | A number |
| Non-client days (admin, sales, training) | A number |
| Billable hours per day | A number |
| Profit margin on top | In % |
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 rate |
|---|---|
| 45,000 | 354.84 |
| 67,500 | 487.9 |
| 90,000 | 620.97 |
| 112,500 | 754.03 |
| 135,000 | 887.1 |
| 180,000 | 1,153.23 |
Formula
Billable days = working days − holidays, sick and non-client daysRequired revenue = target income + operating costsDay rate = required revenue ÷ billable days; hourly rate = day rate ÷ hours per dayWorked 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 %.
Frequently asked questions
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.