If you've just started a consulting business, the best way to determine your rate is to divide your previous salary by 52 weeks of work and then divide that number by 40 (the number of hours you work in a week). This will give you the hourly rate you were paying before. A quick and easy way to calculate your consulting fees is the 3 times per hour method. This method is best if you're transitioning from a similar position at an agency or if you're doing consulting as a secondary activity.
By using 3 times per hour, you can accurately match your current or previous rate without overestimating or overburdening your customers. The hourly formula is when you charge by the hour for your consulting services. Set an hourly rate, track your hours, and then bill your customer by the hour. The above tips, along with the processes below, should help you decide how much you will charge for your consulting services and in formulating a pricing guide for consulting firms.
