Use the following worksheet to calculate your annual expenses, annual profit goal and hourly rate necessary to achieve the profit goal.
| Example | Your Estimates | |
| Labor: | ||
| My Salary | $60,000 | ____________ |
| Staff Salary | 25,000 | ____________ |
| Total Labor | $85,000 | ____________ |
| Other Expenses: | ||
| Benefits (30%) | $25,000 | ____________ |
| Rent | 6,000 | ____________ |
| Telephone | 1,200 | ____________ |
| Auto Expense | 900 | ____________ |
| Utilities | 240 | ____________ |
| Meetings & dues | 360 | ____________ |
| Marketing | 1,000 | ____________ |
| Office Supplies | 600 | ____________ |
| Repairs | 600 | ____________ |
| Miscellaneous | 1,000 | ____________ |
| Total Expenses | $37,400 | ____________ |
| Total Operating Expenses | $122,400 | ____________ |
| Profit Goal (10%) | 12,240 | ____________ |
| TOTAL | $134,640 | ____________ |
| Divide by 1,040*: Hourly Billing Rate | $130/hr | ____________ |
* Most consultants estimate that they are doing well if they are billable 50 percent of the time. If there are 2080 hours in a year to work (excluding weekends and holidays), that means that your billable target is 1040 hours.
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Pricing: Introduction The Starting Point: Calculating Break-Even Calculating Break-Even Revenue Calculating Break-Even Units Pricing for Profit: Cost-Based Pricing Pricing for Profit: Value-Based Pricing Discounts Sample Revenue Planning Worksheet for Consultants |
