How much should a new consultant charge?

Underpricing is the most common — and most expensive — mistake new consultants make. Here's how to set a rate you can defend, with real numbers and a simple formula.

The honest answer is: more than you think, and probably more than your old salary implies.As a consultant you carry your own taxes, downtime between projects, health insurance, tools, and the risk the client won't renew. A $100k salary does not translate to a $48/hour rate — it translates to roughly double that once you account for unbillable time and overhead. This guide gives you a repeatable way to land on a number.

Start from a floor, not a guess

Before you price anything, calculate the minimum you need to earn. This keeps you from accidentally working for less than a salaried job would pay. A simple version:

• Target income. Say you want $120,000/year.
• Billable days.You can't sell 250 days a year — selling, admin, and gaps eat into it. Assume ~130 billable days.
• Overhead + taxes. Add ~30% for self-employment tax, tools, and benefits you now pay yourself.

$120,000 × 1.3 = $156,000 needed ÷ 130 days = ~$1,200/day, or about $150/hour as a floor. That's your minimum — value-based pricing usually lets you charge well above it.

Three ways to package your price

1. Day or hourly rate

Easiest to explain, but it caps your income at hours worked and trains clients to watch the clock. Fine for advisory calls or ongoing support. New consultants often land between $100–$250/hour depending on field and seniority.

2. Fixed-price project (recommended to start)

You quote one number for a defined outcome — “a 90-day onboarding email overhaul for $4,000.” Clients love the certainty, and you get rewarded for being fast and good instead of slow. This is the best default for a first-time consultant because it forces you to price the result, not your time.

3. Monthly retainer

A recurring fee for ongoing access or a set scope each month — say $2,000/month for fractional support. Retainers smooth out your income once you have proof and trust, but they're usually a step two, after a successful project. For the full breakdown, see how to price a consulting retainer.

Price the value, not the hours

The biggest jump in what you can charge comes from anchoring to the client's outcome. If a churn problem is costing a SaaS company $200,000 a year, a $10,000 project that fixes it is a bargain — the math sells itself. Always ask two questions before quoting:

• What is this problem costing them? In revenue, time, or risk.
• What's the outcome worth? Your fee should be a fraction of the value you create — a 5:1 or 10:1 return makes it an easy yes.

Real starting numbers by field

These are realistic starting ranges for a competent first-time consultant with relevant experience. Treat them as a floor to beat, not a ceiling:

How to present your price with confidence

• Quote a range or a single number — never an hourly “we'll see.” Certainty signals experience.
• Offer 2–3 tiers. A good/better/best menu anchors the middle option and lets the client choose scope, not whether to buy.
• Say the number, then stop talking. Silence after a price is not your cue to discount.
• Raise your rate every 2–3 projects. Your first clients buy your proof; each case study earns you the next increase.

Mistakes that keep new consultants broke

• Charging your old salary's hourly rate. That number ignores unbillable time and self-employment costs.
• Competing on price. The cheapest consultant attracts the worst clients. Compete on a sharp niche instead.
• Discounting to close.If price is the objection, the value wasn't clear — fix the pitch, not the number.
• Never revisiting the rate. Set a standing rule to raise it as your results stack up.

Get priced offers built for your background — free

Pricing gets far easier once you've chosen a sharp niche — a specialist can charge more than a generalist for the exact same hours. If you're still deciding, start with how to choose a consulting niche and how to package your services into priced offers. Once you know your niche, our free Niche Finder returns 3 positioned offer ideas and a realistic price range for each — so you have a defensible number before your first sales call. Then put that number to work: how to get your first consulting client, on LinkedIn specifically, and how to write a proposal that lands the price.

Consulting.me helps first-time consultants launch with confidence. Price ranges are illustrative starting points, not guarantees. No done-for-you client acquisition, no website building, no legal or tax advice, and no income guarantees.