How Much Should You Charge Your Consulting Clients? (2024)

FAQs

What is a good rate to charge for consulting? ›

Keep in mind, if the average consulting fees are around $100 per hour, your experience and track record will need to be taken into account. If you are a brand new consultant, you may be charging closer to $50 per hour. With 20 years of experience under your belt, you may be charging $150 or even $200 per hour.

Example: If your former salary was $75,000 an hour, start by dividing 75,000 by 52 to get 1,442 (your previous weekly salary). Next, divide 1,442 by 40 to get 36, which was your previous hourly rate. Lastly, mark up 36 by 25–30% to determine your ideal consulting rate: $45 to $48 an hour.

McKinsey's rates, for example, range broadly from $300 to $800 per hour, with project minimums typically starting at $500K.

As of Apr 22, 2024, the average hourly pay for a Consultant in California is $49.14 an hour.

Desired profit amount + desired salary + operating costs / number of income producing hours = your hourly rate. For example: Desired profit of $16,500 + desired personal pre-tax salary of $83,500 + operating costs of $30,000/1040 income generating hours = $125 per hour.

Take an Owner's Draw

To pay yourself as a sole proprietor, all you have to do is transfer money from your business account to your personal bank account. It's super easy. Better yet, set up ongoing bank transfers between your business account to personal account so you never forget to pay yourself.

They pay good money for said expertise and expect transparency, cost efficiency, trust, better quality and value for their money, accountability, and expediency, in their services. And if consultants fail to deliver, they can always switch to another firm that can provide results.

There is a pretty big range if you are hiring one of the Big 4 consulting firms (McKinsey, Booze Allen, Accenture, Deloitte) compared to a small boutique firm or an independent management consultant. You can expect the hourly rate to start at $350. But, it may go as high as $1,000.

How do I choose an hourly rate for consulting? ›

Essentially, the consulting rate is calculated by taking your current rate and multiplying it by 2 or 3. An hourly rate of $35, for example, means that your consultancy rate should be $70 or $105.

Apply the rule of thirds – 1/3 is your salary, 1/3 is expenses, 1/3 is unproductive time. In this case simple triple the salary you expect and divide it by the number of working days in the year to obtain a daily rate.

You can deduct fees you pay to attorneys, accountants, consultants, and other professionals if the fees are paid for work related to your consulting business.

Day rates, in the UK, can range between £500 and £5,000, averaging £1,500-£2,000. Across the rest of the world, the variations can be even greater.

How much does a Freelance Consultant make hourly in the United States? The average hourly wage for a Freelance Consultant in the United States is $44 as of May 28, 2024, but the salary range typically falls between $40 and $48.

COMMON HOURLY RATES

Hourly rates for a small business strategy consultant range from 50 to 500 USD. It depends on the level of expertise. Hourly rates for marketing consulting range between 10 – 250 USD. There are always markups for specific skills or experience.

How much do HR consultants charge per hour? HR consultants' hourly rates can vary depending on their experience, location, and the specific services they offer. On average, HR consultants charge between $100 to $300 per hour.