Consulting Day Rate Calculator
- Expenses
- Self-employment tax
- Your pay
Income tax isn't included in the target. Quote higher for short projects, rush work or travel you can't bill.
How the consulting day rate calculation works
The consulting day rate and hourly rate that cover your target pay, expenses and self-employment tax at a realistic utilization.
Set your target pay
Use a yearly figure before income tax. $120,000 is the default.
Add self-employment tax and expenses
Keeping $120,000 after SE tax (15.3% of 92.35% of profit) needs about $139,745 of profit. Add $15,000 of expenses for about $154,745 of revenue.
Count only the days you will bill
230 working days at 60% utilization is 138 billed days. If you are new, plan for fewer billed days until you have steady clients.
Divide revenue by billed days
The day rate is revenue ÷ billed days. Divide by hours in a billed day for an hourly rate.
Worked example. To keep $120,000 after self-employment tax you need $139,745.40 of profit, so SE tax is $19,745.40. With $15,000 of expenses, revenue must be $154,745.40. Over 138 billed days that's $1,121.34 a day, or $140.17 an hour for an 8-hour day.
Consulting Day Rate FAQ
How do I calculate a consulting day rate?
Add target pay, business expenses and self-employment tax, then divide by the days you expect to bill. $154,745 over 138 days is about $1,121 a day.
How much should I charge for consulting?
Work back from your costs, not from a market average. To keep $120,000 after self-employment tax with $15,000 of expenses and 138 billed days, charge about $1,121 a day or $140.17 an hour. If you bill only 50% of 230 days (115 days), it rises to $1,345.61 a day.
What utilization rate should a consultant use?
There's no official figure. Divide the days you actually billed last year by the days you were available to work. If you are new, start lower than you hope for, because sales, admin and gaps between projects take real time.
What do management consultants earn as employees?
The BLS Occupational Employment and Wage Statistics survey for May 2025 puts the median wage for management analysts (SOC 13-1111) at $101,860 a year, or $48.97 an hour; the mean is $113,790. These are employee wages, not self-employed rates. To keep $101,860 after self-employment tax with $15,000 of expenses and 138 billed days, you'd charge about $968 a day, or $121.03 an hour.
Should I charge by the day or by the hour?
Day rates suit work that fills a day and avoid haggling over hours. Hourly suits short, irregular tasks. This calculator gives both from the same numbers.
Does the rate include income tax?
No. Self-employment tax is included when the toggle is on; set your target pay high enough to cover income tax. This is a pricing estimate and isn't tax advice.
Sources: IRS: Self-employment tax · SSA: Contribution and benefit base · BLS OEWS, May 2025: Management analysts (13-1111), median annual wage