How do I calculate my consulting rate?

July 21, 2019 Off By idswater

How do I calculate my consulting rate?

If you’re just starting a consulting business, the best way to determine your rate is to divide your former salary by 52 work weeks and then divide that number by 40 (the number of work hours in a week). This will give you the hourly rate you were making before.

How do you charge for consultation services?

To calculate your hourly consulting rate:

  1. Determine what salary you’d like to make.
  2. Take that number and divide it by 52 (number of working weeks), then again by 40 (number of hours each week).
  3. Take that number and mark it up by 25% to 50%.

What is the general fee charged by consultants?

What is known, though, is that rates can differ widely, from a monthly rate of INR 24,000 for an interim consultant working on an operational level to INR 1,80,000 or more per month for a consultant from a leading strategy consulting firm.

Do consultants get paid for travel time?

Do consultants charge for travel time? Although it depends on the individual consultant, many consultants do charge for time spent traveling to client sites. I addressed the issue of billing travel time charges a while ago and it’s become one of the hottest topics on this site.

How much does a consultant make an hour?

How Much Do Consultant Jobs Pay per Hour?

Annual Salary Hourly Wage
Top Earners $144,500 $69
75th Percentile $104,000 $50
Average $83,450 $40
25th Percentile $50,000 $24

What is a consultancy fee?

A consultancy fee is the payment a development consultant receives for his work on a particular project, which can be supplemented with per diems to cover additional work-related costs.

How can I increase my consulting fees?

Here are my suggestions.

  1. Get right to the point. Price increases are a normal part of doing business.
  2. Make it a policy.
  3. Set an effective date.
  4. Remind them of your value and how you value the relationship.
  5. Give your clients ample notice.
  6. Most importantly, be confident.

Do consultants get per diem?

Per diem simply means “by the day” — the amount the consultant expects to be paid for a day of work. Some consultants only use a per diem rate. Others charge out by the hour and multiply by eight hours to get their daily rate — some discount that a little.

What are billable hours for a consultant?

Billable hours represent work hours that a staff member reports as being chargeable to a client. The concept is not unique to consulting, as a variety of professional services firms bill clients by the hour. For example, public accounting and legal services firms also traditionally bill by hours of staff time.