Updated 27 September 2026 · ChiefEU Guides

Consultant Day Rate: How to Calculate What to Charge

Your day rate is one of the first decisions you make as an independent consultant, and one of the most important. A clear method gives you a number you can defend with confidence. This guide shows the calculation step by step, with a worked example in EUR.

Why a day rate needs a method

Many new consultants take their old salary, divide by the working days in a year and treat that as a rate. That number is far too low. It ignores tax paid directly by you, business costs, pension, and the many days you will spend selling and running the business.

A method gives you a floor: the minimum you need to charge to reach your goals. From there, you can price higher based on the value you bring. If you are just starting out, our guide on how to become an independent advisor puts pricing in context.

Step 1: Start with your target income

Decide what you want to take home after tax in a year. Be realistic and honest. This is the income you need for your life, not the fee you hope to charge.

Step 2: Add tax, social contributions, costs and pension

As an independent, you pay tax and social contributions yourself, and you cover costs your employer used to carry. Add each of these to your target:

• Income tax and social contributions: these vary widely by country and legal structure. Use an assumption for planning, then confirm it with an accountant.
• Business costs: accountant, insurance, software, travel, training, equipment, memberships and marketing.
• Pension: you now fund it yourself. Set an annual amount.

Self-employment and tax rules differ by country, so treat any percentage you use as a planning assumption, not advice.

Step 3: Work out your realistic billable days

This is the step most people get wrong. You will not bill every working day. A realistic planning range is that only around 50–65% of your working days get billed. The rest goes to:

• Selling: networking, discovery calls, writing proposals.
• Admin: invoicing, bookkeeping, contracts, email.
• Gaps between projects: time between one engagement ending and the next starting.
• Learning and preparation: keeping your expertise current.

Holidays and public holidays come out before you even start, which is why the calculation begins with weeks worked rather than a full year.

Step 4: A worked example

This is an illustrative example with round numbers. Your own figures will differ.

1. Target take-home income: €120,000.
2. Gross up for tax and social contributions (example assumption: 40%): €120,000 ÷ 0.60 = €200,000.
3. Add business costs: €200,000 + €15,000 = €215,000.
4. Add pension: €215,000 + €10,000 = €225,000 total revenue needed.
5. Working days: 46 weeks × 5 days = 230 days.
6. Billable days (example assumption: 40% non-billable): 230 × 0.60 = 138 days.
7. Minimum day rate: €225,000 ÷ 138 = about €1,630 per day.

Round up to €1,700 per day, excluding VAT. That is the floor in this example. Below it, the business does not meet its goals.

The ChiefEU day-rate calculator, included in the Booklet, runs this calculation with your own figures and lets you test different assumptions for tax, costs and billable days.

Beyond the day rate: how to price your offers

Price per outcome where you can

A day rate measures your time. Clients care about results. Where the outcome is clear, such as a market-entry plan or a restructured finance function, quote a fixed price for the package. Use your day rate to check that the fixed price covers your time, then price on the value to the client.

Retainers

For ongoing work, offer a monthly retainer for a set number of days. It gives the client continuity and gives you predictable income. Agree how extra days are billed. Our guide to fractional executive work in Europe covers typical retainer terms.

Half-day rates

Some work fits a half day, such as a workshop or board preparation session. Set a half-day rate slightly above half your day rate. Short engagements still carry preparation, travel and context-switching.

Reduce scope, not price

When a client pushes back on price, do not discount. Offer a smaller scope instead: fewer days, a shorter phase, or fewer deliverables. This protects your rate and keeps the conversation about value.

Quote in EUR, excluding VAT

State your prices in EUR and make clear they exclude VAT. VAT treatment depends on your country and your client's location, especially for cross-border work within the EU. Check with your accountant.

Frequently asked questions

Should my day rate include VAT?

Quote your day rate excluding VAT and add VAT to the invoice where it applies. VAT rules depend on your country and your client's location, so confirm with your accountant.

How much should I charge as a consultant in my first year?

Use the method above to find your minimum rate, then price packages on the value of the outcome. Starting too low makes it harder to raise your rate later.

Why are only 50–65% of working days billable?

Independents spend time selling, writing proposals, handling admin, learning and covering gaps between projects. These days are part of running the business but are not billed to clients.

When should I raise my day rate?

Review it at least once a year and whenever demand is strong or your results grow. New clients are the easiest place to introduce a higher rate. See our guide to winning your first consulting client for proposal tips.