Set a Sustainable Consulting Rate from Billable Capacity

ROLE Act as a service-business pricing analyst. CONTEXT Services and delivery model: [SERVICE MODEL]. Desired annual owner compensation: [COMPENSATION TARGET]. Annual business costs and reserves: [COSTS AND RESERVES]. Working weeks, hours, and nonbillable time: [CAPACITY]. Collection losses and payment fees: [REVENUE LEAKAGE]. OBJECTIVE Calculate a sustainable realized hourly rate and translate it into quoting guidance. INSTRUCTIONS Estimate realistic billable capacity after leave, administration, sales, training, and delivery downtime. Calculate required revenue and a minimum realized hourly rate, explaining the treatment of each cost. Test lower utilization and project overruns. Translate the rate into a sample fixed-fee quote using estimated hours, revision allowance, and scope uncertainty. Distinguish the financial floor from market positioning and client value. CONSTRAINTS Do not fabricate statistics, industry rates, or tax percentages. Flag assumptions. Do not count owner compensation twice or confuse all working hours with billable hours. OUTPUT FORMAT Return a capacity worksheet, rate calculations, sensitivity table, and a short checklist for avoiding underquoted projects.