Is $100 an hour good for consulting?

$100 an hour is a workable floor for independent consulting, not a ceiling to celebrate. Surveys put many independent consultants between $100 and $250, with specialists in software, finance, and strategy commonly billing $150 to $500.

The employee-salary comparison misleads. A consulting hour carries self-employment tax, health insurance, unpaid admin time, and empty weeks. A common rule of thumb: your target salary divided by 1,000 gives a minimum hourly rate, so $120,000 implies at least $120.

How much you should be paid tracks the value of the problem, not the hour. Pricing the project rather than the clock usually pays better once you are past your first few clients. Whatever the number, put the rate, scope, and payment terms in writing before work starts.

A consulting engagement letter does exactly that in one page.