Calculators
Consulting Rate Calculator
Convert a salary-equivalent income into a consulting day rate and hourly rate that covers costs, benefits and utilisation.
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The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Setting a consulting day rate
- Moving from employment to consulting
- Pricing interim or contract roles
- Reviewing rates annually
About this tool
What the Consulting Rate Calculator does
Consultants often benchmark against the salary they could earn as an employee. To match it, the rate must also replace employer benefits and payroll taxes, cover business costs and allow for days not billed. This calculator converts a salary into an equivalent consulting day rate.
Formula
- Revenue target = (salary × (1 + benefits) + business costs) × (1 + margin)
- Day rate = revenue target ÷ billable days
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Equivalent employee salary | $110,000 |
| Benefits and employer taxes to replace | 25% |
| Business costs per year | $12,000 |
| Billable days per year | 160 |
| Profit and risk margin | 15% |
| Result | Value |
|---|---|
| Consulting day rate | $1,075 |
| Hourly equivalent | $134.32 |
| Annual revenue target | $171,925 |
| Day rate ÷ salaried day pay | 2.54x |
How to read the result
A common rule of thumb is that a consultant’s day rate should be around two to three times the equivalent employee’s daily pay; the multiple shows where you land.
Clients compare day rates with the value delivered. Fixed-fee or value-based proposals avoid daily rate comparisons altogether.
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- Billable Utilisation Calculator: Calculate billable utilisation for a person or team, compare it with target, and the revenue gained by reaching target.
- Scope Creep Cost Calculator: Calculate how unbilled extra requests reduce a project’s effective hourly rate and profit, and what to bill for them.
Browse every calculator in Freelance and Consulting Calculators, or talk to us about portfolio websites for freelancers and consultants.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
By covering the salary they would earn, replacing benefits and taxes, adding business costs and a margin, and dividing by billable days.
Often 120 to 180 a year, depending on how much time goes to sales and delivery gaps.
Day rates discourage clock-watching and suit consulting work; hourly suits small or unpredictable tasks.
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