Consulting Billing Rate Floor Calculator

Take that number and divide it by 52 number of working weeks then again by 40 number of hours in each week.

Consulting billing rate floor calculator.

Knowing your range and your desired target rate within that range is helpful for two reasons. Using this process you can accurately calculate a break even hourly rate for any service based business. Summary of our key findings on consulting fees. Use our calculator to determine your rate.

To calculate your consulting hourly rate determine what salary you d like to make. Your rate also has to cover the non billable time you spend doing proposals contracting invoicing marketing business development and even your vacation time. To do this take your most recent salary divide that number by 50 weeks weeks in a year minus two vacation weeks and divide that number by 40 average work hours per week. If you ve studied our momentum program for consultants you know that we advise consultants against charging based on number of hours worked.

Now divide this number by the estimated number of billable hours. 80 of consultants are actively looking to increase their rate. You could then add on your required gross margin dollar value depending on which pricing strategies have been adopted for your business. Once you have determined the hourly pay rate you can use an average multiplier to calculate the company s bill rate.

Currently the average multiplier is 1 56 as of april 2018. How to set your consulting fees consulting fees calculator past study comparison. Floor billing rates are typically expressed in hours 50 hour 500 hour. You could also use this to calculate a predetermined overhead rate for consulting services for example.

First it establishes your floor or walk away. 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 know you re closer to your ceiling billing rate when you stop quoting hours. Calculate your total costs labor benefits and overhead 2.

This project will cost 25 000 this work will cost 5 000 etc. Use a billing range not one rate. 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. We ll get started with some of our key findings from this year s study.

Consulting fees action plan. For example let s say i wanted to make a gross salary of 60 000 per year. And finfally take that number and mark it up by 25 to 50 percent. This number represents the hours you plan to work multiplied by your utilization rate.