Consulting Billing Rate Floor Calculator

Multipliers vary based on factors like location and industry.

Consulting billing rate floor calculator. For example let s say i wanted to make a gross salary of 60 000 per year. This number represents the hours you plan to work multiplied by your utilization rate. Using this process you can accurately calculate a break even hourly rate for any service based business. 80 of consultants are actively looking to increase their rate.

This project will cost 25 000 this work will cost 5 000 etc. The first step in calculating your consulting hourly rate is to get an idea of what you were making hourly at your most recent job. Katie delgado july 24 2018 march 18 2019 contractor negotiation rate staffing temporary staffing as more and more companies look to hire contractors instead of full time employees to get work done you may find yourself considering a contracting gig for the first time in your career. You could also use this to calculate a predetermined overhead rate for consulting services for example.

Use our calculator to determine your rate. Currently the average multiplier is 1 56 as of april 2018. Consulting fees action plan. You could then add on your required gross margin dollar value depending on which pricing strategies have been adopted for your business.

Calculate your total costs labor benefits and overhead 2. To calculate your consulting hourly rate determine what salary you d like to make. And finfally take that number and mark it up by 25 to 50 percent. Summary of our key findings on consulting fees.

You know you re closer to your ceiling billing rate when you stop quoting hours. We ll get started with some of our key findings from this year s study. Knowing your range and your desired target rate within that range is helpful for two reasons. The consulting fees calculator this calculator provides a great starting point to help you figure out how much much to charge in order to make the amount of money you want each day month and year.

Now divide this number by the estimated number of billable hours. Take that number and divide it by 52 number of working weeks then again by 40 number of hours in each week. Your rate also has to cover the non billable time you spend doing proposals contracting invoicing marketing business development and even your vacation time. Ceiling billing rates are typically expressed as percentages of fees or flat budgets.

First it establishes your floor or walk away. Floor billing rates are typically expressed in hours 50 hour 500 hour. Use a billing range not one rate. How to set your consulting fees consulting fees calculator past study comparison.