Enter the income you want and your costs to get your day rate, your hourly rate and a monthly retainer price.
Enter the income you want to see your rates.
| Minimum | With margin | |
|---|---|---|
| Day rate | ||
| Hourly rate |
| Days a month | Price a month |
|---|---|
| 2 | |
| 4 | |
| 8 |
Rates before VAT. The income you enter is before income tax.
Add the income you want to the yearly cost of running your business, then divide by the days you can actually bill. That gives the lowest day rate that pays you what you set out to earn; the margin then adds room for slow months.
Day rate = (income + costs) ÷ billable days
Billable days are fewer than working days. After weekends, public holidays, holidays and sick days, part of every week goes to selling, admin and learning, which no client pays for. Most independent consultants bill between 180 and 220 days a year.
A monthly retainer sells a fixed number of days each month at your day rate. It gives you predictable income and your client a guaranteed slot, which is why many consultants offer a small discount in exchange for a minimum term.
Add the yearly income you want to your yearly business costs and divide by the days you can bill. With 60,000 of income, 10,000 of costs and 200 billable days, the minimum is 350 a day, before any margin.
Usually between 180 and 220. A year has about 250 working days, and holidays, sick days and the time spent selling, invoicing and learning take the rest.
Multiply the days you commit to each month by your day rate: four days a month at 400 a day is a retainer of 1,600 a month. Some consultants take a little off in exchange for a minimum term of three or six months.
No. Quote your rate before VAT and add VAT on the invoice where it applies: business clients compare prices before VAT.
Contracts, renewals, billing schedules and a portal where your clients follow the work.
Create your free account