Whether you're a management consultant, IT consultant, or business consultant - here's how to price your services.
| Consulting Type | Junior | Mid-Level | Senior | Expert |
|---|---|---|---|---|
| Management Consulting | $100-150 | $150-250 | $250-400 | $400-700 |
| IT/Technology | $75-125 | $125-200 | $200-350 | $350-500 |
| Marketing/Strategy | $75-125 | $125-200 | $200-350 | $350-600 |
| HR/Organizational | $75-100 | $100-175 | $175-300 | $300-450 |
| Financial Advisory | $100-150 | $150-250 | $250-400 | $400-800 |
A common starting point:
Hourly Rate = (Equivalent Salary / 2,000 hours) × 3
Example:
- Equivalent full-time salary: $120,000
- ÷ 2,000 hours = $60/hr as employee
- × 3 = $180/hr consulting rate
The 3x multiplier covers:
- Self-employment taxes
- Benefits (health, retirement)
- Non-billable time
- Business expenses
- Risk premium
| Cost Factor | Employee | Consultant Must Cover |
|---|---|---|
| Employer FICA | Company pays 7.65% | You pay 15.3% total |
| Health insurance | Subsidized | $6,000-18,000/year |
| 401k match | 3-6% | $0 |
| Paid vacation | 2-4 weeks | Unpaid time |
| Job security | Yes | Project-based |
| Sales/Marketing | N/A | 20-30% of time |
| Line Item | Amount |
|---|---|
| Target take-home pay | $150,000 |
| Self-employment tax | $22,950 |
| Federal income tax | $30,000 |
| Health insurance | $12,000 |
| Retirement savings | $20,000 |
| Business expenses | $10,000 |
| Total Needed | $244,950 |
Consultants typically bill 50-65% of their time:
- 48 working weeks × 40 hours = 1,920 hours
- × 60% utilization = 1,152 billable hours
$244,950 / 1,152 hours = $213/hr
| Pricing Model | Pros | Cons |
|---|---|---|
| Hourly | Simple, flexible | Caps your earnings |
| Daily | Standard for consulting | Less granular |
| Project | Higher potential | Scope creep risk |
| Retainer | Predictable income | May undercharge |
Daily rate tip: Hourly × 8 × 0.9 (10% discount for day commitment)
Your expenses, taxes, and goals are unique.
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