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Understanding Consultant Pricing: Factors and Cost Estimation

Discover the factors that influence a consultant's pricing and learn how to estimate costs. Read our article to better prepare for your projects.

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📝 Category:

Sales techniques

📆 Last update:

12/2025

Key Takeaways

The price of a consultant in France typically ranges between €300 and €1,200 excluding VAT per day, with an average around €700–800 excluding VAT depending on experience, sector, and location.

The billing base, or rate base, can vary by city: consultants based in cities with a high cost of living, such as Paris or Lyon, generally have a higher rate base, which explains why their rates tend to be higher than those in the provinces.

For a high-level senior consultant, some daily rates exceed €2,000 to €3,000 in rare expertise areas (strategy, finance, advanced IT).​

How to calculate a profitable daily rate? The complete method

steps to calculate your daily rate

Understanding the calculation of the Daily Rate (DR) is an important step for the viability of your freelance business. It's not just a simple mathematical equation; it's the foundation of your financial security.

Here's how to break down the calculation to cover your needs, expenses, and growth.

1. Basic Formula: Determine the "Cost Price"

Before talking about margin, you need to know how much you actually cost annually. A freelancer cannot base themselves on 218 days (full-time employee) because they must deduct their "non-production" time.

Step A: Target Gross Salary

For a Net Salary of €3,000/month, you must budget for a "Loaded Salary" including social contributions (approx. 45% in France for a SASU/EURL).

  • Target annual net salary: €36,000
  • Estimated social charges: €27,000
  • Subtotal Loaded Salary: €63,000
Step B: Operating Expenses (Opex)

These are the essential fixed costs to run your business:

  • Software & subscriptions: €1,200/year (Adobe Suite, CRM, Prospecting Software, Hosting, etc...)
  • Insurance (Professional Liability): €500/year
  • Accounting & bank fees: €1,500/year
  • Equipment & training: €2,000/year
  • Total Expenses: €5,200

2. Include Target Margin (30%)

The margin is not an unnecessary bonus: it's your capacity for self-financing and your security for lean periods.

  • Total annual cost (Salary + Expenses): €68,200
  • Add Margin (30%): €68,200 × 1.30 = €88,660

Your business must therefore generate €88,660 excluding VAT in annual revenue to be secure.

3. Determine the Number of Billable Days

⚠️ This is the tipping point.

Working 218 days is a myth for an independent who also manages their business.

3) Actual billable days: 365 → 260 → 225 → 180 (the tipping point)
Type of days 🗓️ Calculation 🔢 Total remaining 🎯
Working days 🧭 365 days - weekends 🛑
→ The first “reality check”…
💡 Here, you already see that 365 doesn't exist
260 days
→ Theoretical base of presence
🎯 Before holidays, before business management
Holidays & Public Holidays 🌴 25 days (5 weeks) + 10 days (public holidays) 🧳
→ Zero billing, but essential…
🎯 Otherwise you crack mid-quarter
225 days
→ “Available” days in the year
💥 But not yet sellable
Non-billable time ⛔ 20% (Prospecting, Admin, Monitoring) ⚙️
→ The invisible time that keeps the business running…
🎯 And that sinks your daily rate if you forget it
180 days
→ Your “real” billable days
✅ The honest base for calculation
⚠️ Tipping point Working 218 days is a myth for an independent who also manages their business…
→ The number that counts is what you can SELL 180 days
🎯 And your daily rate suddenly becomes logical, not “optimistic”

Note: 180 days is the most realistic calculation base for an expert consultant.

4. Final Daily Rate Calculation

The formula is simple:

calculation elements for daily rate simulation

In our example:

Example calculation of a daily rate in question

🎯 Verdict: To pay yourself €3,000 net per month while protecting your business, your daily rate should be rounded to €500 excluding VAT.

5. Adjust this Daily Rate According to Context

The mathematical calculation provides a safety base, but the market imposes its reality:

  • Perceived Value: If your intervention makes a client earn €100,000 in 10 days, a daily rate of €500 is too low. This is the principle of Value Based Pricing.
  • Scarcity: For high-end expertise, this daily rate can be doubled if competition is low.
  • Elasticity: For a very long-term mission (more than 6 months), you can accept to slightly reduce your margin because the risk of inter-contract decreases, but never go below your cost price (€380 in this example).

⚠️ 5 WORST mistakes when announcing the daily rate

Set of mistakes when announcing a daily rate regardless of specialization

Calculating your daily rate is one thing, getting the client to accept it is another. Here are the traps to avoid during your negotiations:

1. Apologizing for your price

Never say “It's a bit expensive, but...” or “I know my rate is high”.

By doing so, you admit that your value is questionable 🚨. Announce your daily rate with confidence: it is the price of quality and the viability of your expertise.

2. Justifying your rate by your expenses

The client doesn't care that you pay €1,500 for an accountant or that you have a 30% margin. Always justify your daily rate by the ROI (Return on Investment) for the client and the benefits you bring to their project.

3. Lowering your price without compensation

If a client negotiates, never reduce your rate without taking something away in exchange (reduction of the mission scope, longer deadlines, advance payment).

⚠️ Lowering your price without reason completely discredits your initial calculation: for this, I recommend this book that will help you negotiate like a pro:

Never Split the Difference - attributed to Chris Voss

4. Forgetting to specify "Excluding VAT" (excl. VAT)

This is a classic beginner's mistake. In B2B, we always talk in excl. VAT. If you don't specify it, the client might think it's incl. VAT, which would cut your income by 20% (amount of VAT).

5. Comparing your daily rate to an employee's salary

A client might say: “But €500 a day makes €11,000 a month!”.

❌ This is a FALSE calculation! Remind them (with pedagogy) that a freelancer assumes ALONE their holidays, health insurance, equipment, training, and inter-contract risk, unlike an employee who actually costs the company double their net salary.

tasks for calculating VAT vs incl. VAT

Daily Rate vs Cost Price: rate vs profitability

To manage your business like a true entrepreneur, you need to juggle two radically different indicators: the Daily Rate (what you charge the client) and the Cost Price (what a day of work costs you).

What is the Cost Price?

The Cost Price is the minimum amount you must charge per day to not lose money. It covers your loaded salary and operating expenses, but contains no margin. If you charge at the Cost Price, your business survives but does not grow.

Comparison: Daily Rate vs Cost Price

Cost Price vs Daily Rate (2025): 6 criteria, and the trap of the “floor price”
Characteristic 🧭 Cost Price (Daily Cost Price) 🧮 Daily Rate (Average Daily Rate) 💳
Definition 🔍 What you cost per day worked
→ The “internal” figure, without staging…
🎯 The base before talking business
What you actually charge
→ The “market” figure, visible and assumed…
💥 The one that finances your future
Composition 🧩 Salary + Charges + Fixed Expenses
→ Everything that goes out, even when not billing
🧠 The real cost, not the “felt” cost
Cost Price + Profit Margin 30%+
→ The margin is for breathing, investing, absorbing…
✅ Otherwise, you suffer the slightest dip
Objective 🎯 Break-even point (financial balance)
→ You don't lose money…
⚠️ But you build nothing
Profitability and growth
→ You create room for maneuver…
💎 And secure your pace
Usage 💬 Serves as a “floor price” in negotiation
→ The vital minimum, to keep in mind…
🎯 Not to display as a goal
Serves as a base for commercial negotiation
→ It's your “pro” price, coherent, defensible…
✅ The one you optimize with value
Risk ⚠️ Charging at the Cost Price prevents investing
→ You “survive”, you don't grow…
🔥 And you exhaust yourself compensating
It's the rate that ensures your sustainability
→ You can train, prospect, improve…
💥 And hold on over time
Mental shortcut 🥊 Cost Price = “I don't lose” 🧮
→ Useful to say NO when it's too low…
🎯 But dangerous as a target
Daily Rate = “I build” 💳
→ Useful for choosing your missions…
💎 And giving yourself some air

Why is this distinction important?

  • ⚠️ If a client negotiates below your Cost Price, you work at a loss.
  • ⚠️ The gap between your Cost Price and your actual Daily Rate represents your net profit. This is the money that allows you to change your computer, pay for training, or build a precautionary savings.
  • ⚠️ Knowing your Cost Price (in our previous example, it was €380), it becomes much easier to refuse a mission without feeling guilty.

Average rates of a consultant (day, HOUR, mission)

In 2024–2025, the average Daily Rates observed in France are generally positioned as follows: €300–600 for a junior, €500–800 for an intermediate, €800–1,200 (or more) for a senior or expert.

Several barometers and umbrella companies estimate the market average around €700–900 excluding VAT/day across all profiles.​

  • For hourly billing, independent consultants are most often between €50 and €150 per hour depending on the level of expertise, with peaks up to €300 on very strategic or technical subjects.
  • On a fixed-price mission, you commonly find tickets of €500–1,500 for small studies or training, and €1,000–5,000 (or much more) for strategic or transformation missions.​

Overview of price ranges 🧮

Consultant prices: 5 profiles, 3 figures, quick decision
Profile 👤 Daily Rate 💶 Hour ⏱️ Mission 💼 When to choose 🎯
Junior ⚡ 💶 €300–500 €40–60 / h €500–2,000 ✅ Simple execution, clear scope
⚠️ Needs guidance
Intermediate 🧭 💶 €500–800 €70–120 / h €1,000–5,000 ✅ Good balance autonomy/price
🎯 Diagnosis + action plan
Senior 🎯 💶 €800–1,200 €120–200 / h €3,000–10,000 💥 Governance, transformation, arbitrations
⚠️ Expensive if scope unclear
Rare Specialist 🚨 €900–1,800 ≈ €120–250 / h ≈ €5,000–20,000+ ✅ Cyber/data/AI/cloud, possible urgency
⚠️ Urgency = price increase
High-Level Expert 💎 💶 €1,200–2,400+ €150–300 / h €10,000 and up ✅ Sensitive decisions, high risk
🎯 When mistakes are very costly
Shortcut ⚡ Clear scope + execution → Junior / Intermediate
Complexity + arbitrations → Senior
Scarcity/urgency → Rare Specialist
Critical decision → Expert

Rates by fields: strategy, HR, finance, communication, IT

The consultant rates by sector show marked differences, even at equivalent seniority.

The rate largely depends on the nature of the consultant's intervention, particularly according to the complexity, duration, and expected outcomes of the mission. In some fields like finance or strategy, a variable part of the remuneration may be planned, linked to the success or performance of the intervention. It is also noted that consultants specializing in technical or financial fields are among the best paid.

  • Strategy / management consulting: typically €350–500 for a junior, €500–700 for an intermediate, €700–1,000 for an expert, with high-end strategy consultants between €800 and €2,000 excluding VAT/day.​
  • Finance and management consultants: often €700–900 for a junior, €900–1,100 for an intermediate, €1,100–1,400 for an expert, with very high incomes possible in niches.​
  • HR, training, communication, marketing: around €400–800 excluding VAT/day depending on the level, with for example €500/day for an HR consultant or €450–500/day for an SEO/SEA consultant.​
  • IT / digital (PLM consultant, cloud, product owner, etc.): frequently between €500 and €900 excluding VAT/day for confirmed profiles, and an average around €650 for certain professions.​

Examples of daily rates by field 📊

Examples of daily rates by field of expertise: junior vs senior/expert (2025)
Field of expertise 🧠 Junior daily rate 💼 Senior / expert daily rate 🏆 Concrete example 💡 Quick reading 📝
Strategy / management €350–500/day
Often on structured missions
€700–2,000/day 🏆 €2,000/day
Peak on C-level issues
Premium strategy firm at ≈ €1,500/day
“Decision-making” deliverables with high impact
✅ Very high if critical issue
⚠️ Budget quickly significant
Finance / management control €700–900/day
Diagnosis, reporting, models
€1,100–1,500/day 💶 €1,500/day
Rise if finance transformation
Finance expert at ≈ €1,400/day
Framing, steering, optimization
✅ Quick ROI on margins/KPI
⚠️ Requires clean data
HR / part-time HRD €400–600/day
HR processes, recruitment, support
€600–900/day 👥 €900/day
Peak if sensitive social context
Independent HRD at ≈ €700/day
HR structuring + manager support
✅ Good leverage for SMEs/ETIs
⚠️ Depends on internal context
Communication / marketing €400–700/day
Production + campaign execution
€700–1,000/day 📣 €1,000/day
Increase if strategy + steering
SEO consultant at ≈ €450/day
Audit + action plan + optimization
✅ Wide range depending on specialty
⚠️ Very variable depending on expected results
IT / digital / data €500–800/day
Dev, integration, data ops, cloud
€800–1,200/day 🧠 €1,200/day
Increase if scarcity / urgency
PLM consultant ≈ €650/day
Tool project + process + change management
✅ Quickly rises on rare profiles
⚠️ “Urgency” = frequent surcharge

Post-Covid Market

There are many daily rate barometers (IT, digital, HR, freelancers in general), published by umbrella companies, recruitment firms, or platforms, which allow a more refined consultant rate evaluation by profession and region. These benchmarks show a general upward trend on scarce profiles (data, cloud, digital transformation) and greater variability on generalist profiles.​

Access to a network of qualified experts also allows optimizing the consulting budget by facilitating connections with competent professionals suited to the specific needs of the company.

Market demand strongly influences consultant rates, especially in sectors with a skill shortage. Moreover, fees must reflect the level of expectation required by the client.

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Since the post-Covid market, several trends influence prices:

  • Explosion of freelance consulting, remote work, and consultant umbrella employment, allowing remote work for better-paying clients.​
  • Increased expectations from companies on delivered value: measurable impact, skills transfer, team autonomy.
  • Greater maturity on mission cost reduction: mix of in-person/remote, fixed pricing, risk-sharing through success-based remuneration on certain projects.​

Conclusion

For a small business owner or project leader, a consultant daily rate between €600 and €900 for a confirmed or senior profile remains coherent for structured and high-value-added missions. For an aspiring consultant, aiming to start between €300 and €500 as a junior, then gradually increasing based on expertise, results, and client recommendations is a prudent and realistic strategy.​

The key is less about seeking the lowest price than the best return on investment: a more expensive but more relevant, fast, and autonomous consultant can ultimately cost the company less than a less experienced profile.

To take action, it is recommended to: compare several profiles, request a detailed quote (daily rate, number of days, deliverables), clarify mission conditions, and on the consultant's side, rely on daily rate barometers to position oneself and then test the market.​

Different Billing Models for a Consultant

Consultants today have a wide range of billing models to tailor their rates to the specifics of each consulting assignment. This choice is never trivial: it depends on the client's needs, the nature of the project, the level of expertise required, the duration of the engagement, and the objectives to be achieved. Understanding these different models helps optimize the client-consultant relationship and secure the budget while maximizing added value.

billing process for a consultant

1. Billing by Time Spent (Daily Rate or Hourly Rate)

The most common model remains billing by time spent, usually in the form of a daily rate or hourly rate.

This billing method is particularly suited for assignments where the workload is difficult to estimate in advance, or when the project requires great flexibility (for example, occasional support, management consulting, or human resources consulting). It offers the client visibility on the actual cost of the engagement while allowing the consultant to adjust their commitment according to evolving needs.

2. Fixed-Price Billing

Fixed-price billing involves setting a total price for the entire assignment, regardless of the actual number of days or hours spent. This model is favored for well-defined projects with a clear scope, deliverables, and deadlines (example: audit, study, strategic plan, training). It secures the client's budget and encourages the consultant to optimize their organization. However, it requires a precise scoping phase to avoid misunderstandings or misestimations of the actual workload.

3. Performance-Based Billing

Some consultants offer compensation partially or entirely based on achieving measurable results (for example, revenue gain, cost reduction, improvement in HR or supply chain indicators). This rarer model is mainly applied to consulting assignments with significant strategic stakes or projects where the impact can be objectively evaluated.

It involves a strong commitment from both parties and a clear definition of success criteria.

4. Subscription or Recurrence

For regular needs or long-term support, a monthly or quarterly subscription model can be chosen.

This format is common in HR consulting, interim management, or operational support (example: part-time HR director, project follow-up, team coaching). It allows the client to spread costs and benefit from continuous expertise, while providing the consultant with visibility on their activity.

5. Hybrid or Mixed Models

Finally, many consultants combine several models depending on the project phases: fixed-price for scoping, daily rate for support, performance bonus for achieving objectives.

This tailored approach allows billing to be adjusted to the specifics of each consulting assignment and aligns the interests of the client and consultant as closely as possible.

How to Choose the Right Model?

The choice of billing model depends on several factors: the clarity of the need, the complexity of the project, the duration of the assignment, the expected level of commitment, the ability to measure results, and the willingness to share risks. For the client, it is essential to clearly define expectations and request a detailed quote, specifying the chosen billing method.

FLOWCHART FOR CHOOSING A BILLING MODEL

For the consultant, it involves assessing the workload, potential uncertainties, and the value provided to propose the most suitable solution for the consulting assignment.

In summary, the diversity of billing models allows for a tailored response to each project, taking into account the stakes, budget, and objectives of each company. A well-considered choice ensures effective, transparent collaboration that creates value for all stakeholders.

FAQ

❓ What is the average daily rate for a consultant's service (senior or junior)?

The cost of a consultant's service primarily depends on the chosen billing method. The most common is the ADR (average daily rate), which can range from €300 to over €1,500 per day depending on expertise, industry, and the rarity of the profile.
Other formats exist: fixed price per project, monthly subscription, or performance-based billing. The more strategic, urgent, or high-impact the mission, the higher the rate.

❓ How to set your prices as a consultant for a project?

Setting your prices is not about “aligning with the market,” but about assessing the value created. A consultant should consider:

  • their level of expertise and actual experience,
  • the complexity and risk of the project,
  • the expected benefit for the client (time, money, performance),
  • their expenses, non-billable time, and availability.

A good price is one that is justified, consistent with the positioning, and understandable to the client.

❓ How much is a consultant paid?

A consultant's actual earnings greatly depend on their status. A freelancer charging €800 per day does not “earn” €800 net: they must cover expenses, periods without work, client acquisition, and taxes.
Conversely, a salaried consultant receives a more secure fixed salary, but it is much lower than the ADR billed by their firm to the final client. The difference compensates the structure, risk, and commercial support.

❓ How does a consultant get paid?

A consultant can be paid in several ways:

  • daily (ADR) for long or recurring projects,
  • fixed price for a clear and defined scope,
  • monthly as part of ongoing support,
  • less commonly, performance-based on defined objectives.

Payment is generally made by invoice, with terms ranging from 30 to 60 days depending on the clients, particularly in B2B or large accounts.

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