Consulting Billing Rate Floor Calculator

We ll get started with some of our key findings from this year s study.

Consulting billing rate floor calculator.

To calculate your consulting hourly rate determine what salary you d like to make. 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. Ceiling billing rates are typically expressed as percentages of fees or flat budgets. Consulting fees action plan.

Your rate also has to cover the non billable time you spend doing proposals contracting invoicing marketing business development and even your vacation time. Knowing your range and your desired target rate within that range is helpful for two reasons. You could then add on your required gross margin dollar value depending on which pricing strategies have been adopted for your business. For example let s say i wanted to make a gross salary of 60 000 per year.

Use a billing range not one rate. This number represents the hours you plan to work multiplied by your utilization rate. Floor billing rates are typically expressed in hours 50 hour 500 hour. Calculate your total costs labor benefits and overhead 2.

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. 80 of consultants are actively looking to increase their rate. You know you re closer to your ceiling billing rate when you stop quoting hours. Once you have determined the hourly pay rate you can use an average multiplier to calculate the company s bill rate.

Now divide this number by the estimated number of billable hours. Using this process you can accurately calculate a break even hourly rate for any service based business. 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. First it establishes your floor or walk away.

Currently the average multiplier is 1 56 as of april 2018. Summary of our key findings on consulting fees. If you ve studied our momentum program for consultants you know that we advise consultants against charging based on number of hours worked. And finfally take that number and mark it up by 25 to 50 percent.

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. You could also use this to calculate a predetermined overhead rate for consulting services for example. Multipliers vary based on factors like location and industry. How to set your consulting fees consulting fees calculator past study comparison.