Break-Even Calculator for Consulting

If you run a consulting practice — whether solo or with a small team — your break-even point comes down to one question: how many hours do you actually need to bill each month to cover overhead? Unlike product businesses, consulting firms sell time, and the biggest variable is utilization rate. A solo consultant might achieve 60–75% billable utilization (the rest goes to sales, admin, and professional development), while a multi-person firm typically runs 50–65%. That means a consultant billing $200/hour with 75% utilization and 160 available hours/month generates $24,000 in revenue — but only if the pipeline stays full. Your fixed costs in consulting tend to be modest compared to brick-and-mortar businesses: professional liability insurance, software subscriptions, co-working or office space, and marketing. But they're not zero, and many new consultants underestimate them, especially when transitioning from full-time employment where the employer covered these. The most dangerous trap is setting your hourly rate based on your old salary divided by 2,080 hours — you need to account for unbillable time, self-employment taxes, benefits you now self-fund, and business development costs. This calculator helps you determine the minimum billable rate and monthly hours you need to keep the lights on, so you can set pricing that actually sustains your practice long-term.