- Published: Tuesday, 03 April 2012 01:00
- Written by Gail Vallance Barrington
I was asked the other day to explain in one minute or less how independent consultants determine their daily rate. Okay! The long story short is actually a formula:
Daily Rate = (Salary + Overhead) / Billable days + Profit
But if you are like me, Algebra was a long time ago, so perhaps a longer short story will be more meaningful.
There are four important facts you must know to determine your daily rate. To get to that bottom line, some reflection and a few calculations are in order. You need to know the following: