Consulting & freelance rate calculator

Work out what to charge per hour or day, based on your pay, costs and billable hours. For independent consultants, freelancers and small firms.

Who's the rate for?
Pay and business costs

Annual pay before income tax.

Added to pay. Enter 0 to leave it out.

Insurance, software, your accountant, equipment.

Add itemised costs

Enter annual amounts. While open, this list sets the business costs total above.

Your working year

Include admin and sales time.

Days off a year

After 30 days off: 46 working weeks, or 1,840 hours.

The percentage of working hours you bill to clients. Use your tracked hours to check the preset.

Pricing

Percentage added to break-even for profit and a buffer.

Hours included in a full day's fee.

Added on top if you're registered. 0 leaves it off.

$145an hour$1,087.50 a day

See the working

Your hourly rate

$145an hour

Day rate (7.5 hrs)
$1,087.50
Break-even
$122.28
an hour, before markup

What each billable hour pays for

Your pay
$108.70
Retirement
$0.00
Business costs
$13.59
Markup and rounding
$22.71

How billable hours change your rate

  • 50% billable$170
  • 60% billable$145
  • 70% billable$125

Based on 1,104 billable hours a year, or 24 per working week. At this rate, fees average $13,340 a month before sales tax.

Pay is before income tax. The hourly rate rounds up to a multiple of 5 in your chosen currency.

How your rate is calculated

Your billable hours need to cover a full year's pay and costs. The calculator assumes a five-day working week:

  1. Working hours: (52 − days off ÷ 5) × weekly hours.
  2. Billable hours: working hours × billable percentage × number of people.
  3. Break-even rate: (pay + retirement contributions + business costs) ÷ billable hours.
  4. Hourly rate: add the markup to break-even, then round up to a multiple of 5.
  5. Day rate: hourly rate × hours included in a day.

A 20% markup turns a break-even rate of 100 into 120. It is a percentage of costs, not a profit margin on sales.

Use the hours you expect to bill. Dividing by a full working year ignores leave, admin and gaps between clients.

Two worked examples

Illustrative budgets using the New Zealand consultant and Australian small-firm presets.

A consultant in Wellington

A solo consultant taking 20 days’ leave, 12 public holidays and five sick days.

Rate working for a consultant in wellington
PayNZ$120,000
KiwiSaver at 3.5%NZ$4,200
Business costsNZ$14,000
Total annual costsNZ$138,200
Working weeks after 37 days off44.6
Billable hours at 60% of 40 a week1,070
Break-even rateNZ$129.11
With 15% markup, rounded upNZ$150
Day rate (7.5 hours)NZ$1,125
With 15% GSTNZ$172.50 an hour

A four-person bookkeeping practice in Brisbane

An owner and three bookkeepers, with admin staff included in overheads. Each takes 20 days’ leave, 10 public holidays and five sick days.

Rate working for a four-person bookkeeping practice in brisbane
Pay for everyone who billsA$380,000
Super at 12%A$45,600
OverheadsA$90,000
Total annual costsA$515,600
Working weeks after 35 days off45
Billable hours at 65% of 40 a week × 4 people4,680
Break-even rateA$110.17
With 20% markup, rounded upA$135
Day rate (7.5 hours)A$1,012.50
With 10% GSTA$148.50 an hour

For the Wellington consultant, billing 50% of working hours instead of 60% raises the required rate from NZ$150 to NZ$180. Check your billable share against tracked time before relying on the result.

The practice’s A$135 is an average across four people; individual rates can vary. For fixed-fee work, see how much to charge for bookkeeping services.

Hourly rate, day rate, retainer or fixed fee?

Use the hourly rate to check whether a quote covers your time and costs.

  • Hourly: charge for time worked when the scope is uncertain.
  • Day rate: multiply by the hours included, and agree how extra hours will be charged.
  • Retainer for a set number of hours: 20 hours a month at NZ$150 is NZ$3,000.
  • Fixed fee: estimate the hours, multiply by your rate and allow for uncertainty. Track the time to check whether the job was profitable.

See deciding your hourly rate for pricing models and market comparisons.

GST, VAT and your rate

Calculate your rate before GST or VAT, then add the applicable tax if you're registered. The tax you collect is separate from your fees.

The calculator fills in the standard rate for your currency: 10% GST in Australia, 15% GST in New Zealand and 20% VAT in the UK. Adjust it to match your work, or enter 0 if you're not registered. Check registration rules with the ATO, Inland Revenue or HMRC.

Before you quote

  • Allow for deductions. Pay is before income tax, levies and loan repayments. Budget for these personal deductions separately from business costs.
  • Check the market. This is the rate your budget needs. Compare it with what clients will pay for your experience and work.

Frequently asked questions

How much should a consultant charge per hour?

Divide your annual pay and costs by the hours you expect to bill, then add a markup for profit and a buffer. Use your own figures in the calculator to find the rate your business needs.

How do I work out a day rate?

Multiply your hourly rate by the hours included in a day. At NZ$150 an hour, 7.5 hours is NZ$1,125. Check any discount against your break-even rate.

What is the rule of three for consulting rates?

It's a shortcut: charge three times your equivalent salary per hour, allowing a third each for pay, overheads and profit. It doesn't account for your actual costs or billable hours; this calculator does.

Should my rate include GST or VAT?

Calculate your fee first, then add the applicable GST or VAT if you're registered. At 15% GST, NZ$150 plus tax is NZ$172.50; NZ$150 including tax leaves NZ$130.43 in fees.

How much should I charge as a freelancer?

Choose the Freelancer preset, which starts with lower costs and a 37.5-hour week. Adjust the pay, expenses and billable percentage to match how you work.

How often should I raise my rate?

Review it each year, or when your costs or billable hours change. See our guide to raising your rate without losing clients.

Tools for tracking your billable hours

Guides to setting your rates

How to Decide Your Hourly Rate Without Underselling Yourself
Billability and Billable Utilisation: Formula and Benchmarks
How Much to Charge for Bookkeeping Services: A Pricing Guide for Bookkeepers