Consulting Rate Calculator

What you want to take home

How you work

How does this calculator work out my day rate?

Backwards, from your target monthly take-home. It adds your monthly expenses and the income tax due on that combined figure, solving so the after-tax number matches your target, then divides by your billable days per month to reach the day rate you need to charge.

What is the difference between operating as a sole proprietor and through a company for tax?

A sole proprietor pays personal income tax on the full profit, up to 45% at the top SARS bracket. A company pays 27% company tax, and dividends paid out are then taxed at 20%, an effective combined rate of roughly 41.6% on money taken out, generally lower than the top personal rate but with more administration.

How many billable days a month should I plan for as a new consultant?

Fewer than you think. Fifteen a month is realistic for an established practice, but new consultants often land closer to ten, which is why this calculator includes a first-six-months reality check assuming roughly 60% of your target billable days while you build a pipeline.

What counts as a realistic day rate in the South African consulting market?

Above R8,000 a day sits at the premium end and needs a strong track record and clear specialisation. R5,000 to R8,000 is competitive for experienced consultants with a niche. R2,500 to R5,000 is the accessible range most new consultants should plan around while building a repeat client base.

Does this calculator account for business expenses like software, insurance, and an accountant?

Yes. You enter monthly costs for office or coworking, software and tools, an accountant or bookkeeper, professional indemnity insurance, transport, and any other costs, and the calculator adds these on top of your take-home target before working out the required day rate.