Consulting Fee Calculator

Calculate your consulting rate based on income goals, billable hours, overhead, and profit margin.

By Konstantin Iakovlev · Updated September 2026 · Source: BLS Occupational Outlook Handbook — Management Analysts (pay, May 2025)

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hrs
weeks
%
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Hourly Rate

$228.26

Day Rate (8 hrs)

$1,826.09

Monthly Retainer

$19,781.09

Rate Card

Hourly Rate$228.26
Half-Day Rate (4 hrs)$913.04
Full-Day Rate (8 hrs)$1,826.09
Project Rate (40 hrs)$9,130.43
Monthly Retainer$19,781.09

Annual Breakdown

Total Billable Hours920
Gross Revenue$210,000.00
Overhead Costs$48,000.00
Profit$42,000.00

Use the Consulting Fee Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Determine your ideal consulting fee with our calculator, factoring in your desired income, operational costs, and profit targets. This tool helps ensure your rates are competitive and sustainable, allowing you to meet your financial goals as an independent consultant.

The calculator multiplies your desired annual income by one plus your overhead percentage (overhead is entered as a share of that income) and then by one plus your target profit margin to arrive at your gross annual revenue. This revenue is then divided by your billable hours per week times your working weeks per year to determine your hourly rate, from which the rate card derives half-day (4 hours), full-day (8 hours), 40-hour project and monthly retainer (weekly hours × 4.333 weeks) figures.

When calculating, be realistic about your billable hours; many consultants overestimate this. Also, don't forget to include all overheads, from software subscriptions to professional development, as underestimating these can significantly impact your profitability.

Example: Freelance Marketing Consultant

  1. 1 Input: desired annual income $90,000, 25 billable hours a week for 48 working weeks (1,200 hours), overhead 15% (software, insurance, office supplies) and a 20% profit margin.
  2. 2 Revenue needed: $90,000 × 1.15 = $103,500, which covers the income plus $13,500 of overhead; × 1.20 for profit = $124,200, leaving $20,700 of profit.
  3. 3 Hourly rate: $124,200 ÷ 1,200 hours = $103.50. The rate card shows $414.00 for a half day, $828.00 for a full day, $4,140.00 for a 40-hour project and $11,211.64 for a monthly retainer (25 hours × 4.333 weeks).
  4. 4 This rate covers your overhead, your desired income and your profit target, provided you really bill 1,200 hours. Review it periodically against market demand and your evolving business needs.

Source: BLS Occupational Outlook Handbook — Management Analysts (pay, May 2025) · Last updated: September 2026

Frequently Asked Questions

How do I set my consulting rate?
Start with your desired annual income, divide by billable hours (typically 1,000-1,200 per year), and add 25-50% for overhead and profit. For example, a $150,000 target income with 40% overhead at 1,100 billable hours gives about $191/hour ($150,000 × 1.4 ÷ 1,100) before any profit margin.
What do consultants typically charge?
Rates vary too widely by field, client and experience for one average to mean much. A verifiable anchor is employee pay: the Bureau of Labor Statistics puts the median wage for management analysts at $48.97 an hour ($101,860 a year) in May 2025. An independent rate has to sit well above that because it also covers overhead, profit and the hours you cannot bill: at this calculator's defaults (40% overhead, 25% margin, 20 billable hours a week for 46 weeks) a $101,860 income target needs $193.76 an hour.
Should I charge hourly or project-based?
Project-based pricing is often better because it rewards efficiency and is easier for clients to budget. Hourly works better for ongoing or unclear-scope work. Many consultants use a hybrid: project fees with hourly overages.

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