Decision Tools · Business

What day rate clears your number?

Target take-home → defensible day rate, with overhead, taxes, and realistic billable days baked in. Half-day, weekly, hourly, and utilization all derived from the same base.

Your year
$

What you want to keep after tax.

Realistic for solo: 120–160.

Pitching, proposals, invoicing, ops.

Including federal holidays.

%

Insurance, software, accounting, travel buffer.

%

Federal + state + SE tax.

Day rate

$2,411

Hits $180,000 take-home at 140 billable days

Utilization

61%

140 billable ÷ 230 working days

Half-day

$1,446

60% of day rate

Weekly retainer

$9,643

4× day rate (booked-out discount)

Hourly equivalent

$301

Day rate ÷ 8 hrs

Day rate range
Three honest scenarios, not one fake number.

Conservative

$2,049

Realistic

$2,411

Aggressive

$3,013

Conservative = price-sensitive market or first 6 months. Aggressive = booked-out specialist with proof + waitlist.

Reality check
🚀Aggressive

61% utilization is the burnout edge. Raise rates so you can drop to 50–60% utilization without losing income.

Biggest lever
The one variable that moves your result the most.
Pricing leverage (raise day rate)

Your costs are clean — the lever is pricing power. Add proof (case studies, testimonials, named clients) and raise day rate 15–25% on new deals.

The math
No black box. Here's exactly what we did.
  • Gross needed = target take-home ÷ (1 − tax %)
  • Revenue needed = gross needed × (1 + overhead %)
  • Day rate = revenue needed ÷ billable days
  • Half-day = day rate × 0.60 · Weekly = day rate × 4
  • Utilization = billable days ÷ (260 − vacation days)

Common questions

How many days a year should I assume are billable?

120–160 days is realistic for solo consultants. The rest goes to sales, admin, time off, and PD. New consultants overestimate billable days and underprice as a result.

What overhead should I add?

Health insurance, software, accounting, travel buffer, and a tax set-aside on every dollar you bill. Most solos run 30–45% overhead on top of target take-home.

Is day rate or project pricing better?

Day rate protects against scope creep. Project pricing rewards efficiency and lets you charge for outcomes. Most healthy consultancies quote project pricing internally derived from a defended day rate.

When should I raise day rates?

When you're booked 60+ days out, when you turn down work, or every January as a default. Solo consultants who never raise rates fall behind inflation in 2 years flat.

How do I price half-day vs full-day?

Half-day is usually 60% of day rate (not 50%) — context-switching cost is real. Weekly retainers usually 4x day rate (not 5x) to reward booked-out commitment.

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