Consulting Rate Calculator
Salary to Consulting Rate
Rate Comparison
Formula
Hourly Rate = (Salary + SE Tax + Benefits + Overhead) / (1 - Profit Margin) / Annual Billable Hours
Frequently Asked Questions
Why should my consulting rate be higher than my hourly salary?
As a consultant, you pay self-employment taxes (15.3%), fund your own benefits (health insurance, retirement, PTO), cover business overhead, and have non-billable hours. A good rule of thumb is to charge 2-3x your equivalent hourly salary rate.
What is a typical consulting rate?
Rates vary widely by industry and expertise. Management consultants charge $150-$400/hr, IT consultants $100-$250/hr, and marketing consultants $100-$300/hr. Specialized expertise commands premium rates.
How many hours should I expect to bill?
Most independent consultants bill 25-35 hours per week. The remaining time goes to business development, administration, marketing, and professional development. Plan for about 60-70% utilization rate.
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