Freelance RateSetting a rate as an independent consultant
How this work is usually priced, where the unpaid hours hide, and a worked example you can change to your own numbers.
How this work is priced
Consultants sell expertise, so value matters more than hours. Business development takes a large part of the year, which is why a low billable share is normal and the day rate is much higher than an employee hourly equivalent.
The unpaid work
Hours that no client pays for here include selling and proposals, travel, reading and preparation, unpaid first meetings, writing and speaking that builds a name. They are the reason a billable share of 45% is used in the example, not 100%.
Costs to count
Insurance, accounting and legal help, travel, a home office or a desk, marketing and events, tools and subscriptions. Each belongs in the yearly costs box.
A worked example
These figures are made up to show the working in US dollar. Use your own.
| Take-home wanted | $120,000 |
| Business costs | $12,000 |
| Profit needed before tax and savings (30% + 12%) | $206,897 |
| Income to bill in the year | $218,897 |
| Billable hours (44 weeks, 45 hours, 45% billed) | 891 |
| Hourly floor | $246 |
| Day rate floor | $2,211 |
What changes the answer
- If your billable share falls by 10 points to 35%, the hourly floor rises from $246 to $316.
- If you take 3 more weeks off, it rises to $264.
- If your costs are 25% higher than you planned, it rises to $249.
A tip for this work
Start from the result the client wants and what it is worth to them, then check that your day rate from the calculator is below that value. The calculator gives the floor; value gives the ceiling.
Try your own figures
Common questions
Why is a consultant billable share only 45 percent here?
Selling, proposals, travel and preparation are unpaid, so many consultants bill fewer than half of their working hours. Check your own timesheet before relying on this figure.
Can I charge more than the calculator says?
Yes. The result is the minimum that meets your goal with your costs and time off. A price above it comes from the value of the result to the client and how few people can do the job.
Keep going
Example figures on this site are made up to show the working. They are not market rates or averages. Tax, social-insurance, sales-tax and holiday rules differ by country and change, so this site does not state them: ask the tax authority of your country or an accountant. Checked 14 November 2026.