How to Determine Your Consulting Fee

3 Simple & important Steps

• Compute working & billable hours• Compute expenses• Compute risks & savings

Compute working & billable hours

• 40 working hours average per week• 52 weeks/year * 40: 2080 hours• 4 weeks for vacations & illness: 160

hours• 7 holidays: 56 hours• Total working hours: 1864• 30% spent on marketing, travel &

administration• Total billable hours: 1305

• Personal- INR 6 lakh

• Business- Office rent, phone, travel, computer,

professional services, etc

- Total INR 3 lakh

• Total Expenses : 9 lakh

Compute expenses

• 10% customers don’t pay on time or ever

• 20% risk factor of not finding business• 50% savings for retirement, children’s

education & other needs• Total markup on expenses: 80%

Compute risk & saving

• Your total expenses: INR 9 lakh • Total markup: 80%• Total income needed: INR 16 lakh• The base hourly rate

- INR 16 lakh/ 1305 billable hours: INR 1,226

• Round up to INR 1500 to leave room for negotiation

Your hourly rate