# Consulting Bill Rate Calculator

> Work out the hourly rate to charge a client so that target margin is met after overhead and non-billable time.

Page: https://freecalculator.tech/tools/consulting-bill-rate-calculator
Last reviewed: 2026-09-15

## Formula

Cost per billable hour = (Annual salary + Annual benefits + Annual overhead) ÷ (Annual available hours × Utilisation); Bill rate = Cost per billable hour ÷ (1 − Target margin)

- Cost per billable hour = (Annual salary + Annual benefits + Annual overhead) ÷ (Annual available hours × Utilisation); Bill rate = Cost per billable hour ÷ (1 − Target margin).
- Inputs used: Currency, Annual salary, Annual benefits and payroll cost, Annual overhead allocated, Annual available hours, Utilisation, Target margin.
- Edge handling: Annual salary is required.; Annual salary cannot be negative.; Annual salary must be no more than 1000000000000.; Annual benefits and payroll cost is required.; Annual benefits and payroll cost cannot be negative..

## Inputs

- Currency
- Annual salary
- Annual benefits and payroll cost
- Annual overhead allocated
- Annual available hours
- Utilisation
- Target margin

## Worked example: Consultant on $120,000 with 70% utilisation

Salary, benefits and allocated overhead at a 35% target margin.
1. Start with Currency: USD, Annual salary: 120000, Annual benefits and payroll cost: 30000, Annual overhead allocated: 50000, Annual available hours: 2080, Utilisation: 70.
2. Apply the method: Cost per billable hour = (Annual salary + Annual benefits + Annual overhead) ÷ (Annual available hours × Utilisation); Bill rate = Cost per billable hour ÷ (1 − Target margin).
3. Salary, benefits and allocated overhead at a 35% target margin.

## Common questions

### Where does this formula come from?

Employer cost of compensation as defined by the U.S. Bureau of Labor Statistics ECEC methodology. See the source link on this page.

### What kind of calculation is this?

A fully loaded cost per billable hour is divided by one minus the target margin to give the rate that produces that margin. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

### What are its limits?

Produces the rate implied by the inputs; it does not say what a client will accept or what competitors charge. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

### How do I use the Consulting Bill Rate Calculator?

Enter the required values for Currency, Annual salary, Annual benefits and payroll cost, Annual overhead allocated, Annual available hours, and the other fields shown. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the Consulting Bill Rate Calculator use?

Cost per billable hour = (Annual salary + Annual benefits + Annual overhead) ÷ (Annual available hours × Utilisation); Bill rate = Cost per billable hour ÷ (1 − Target margin) The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

### Can the Consulting Bill Rate Calculator be used for exact decisions?

Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.

## Limitations and assumptions

- Inputs outside the supported range are rejected rather than forced into a result.
- The result depends on the values you enter for this consulting bill rate calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- U.S. Bureau of Labor Statistics — https://www.bls.gov/news.release/ecec.toc.htm

## Cite this page

- APA: Free Calculator. (2026, September 15). Consulting Bill Rate Calculator. https://freecalculator.tech/tools/consulting-bill-rate-calculator
- MLA: "Consulting Bill Rate Calculator." Free Calculator, 15 Sept. 2026, https://freecalculator.tech/tools/consulting-bill-rate-calculator.
- Link: Consulting Bill Rate Calculator — Free Calculator, https://freecalculator.tech/tools/consulting-bill-rate-calculator