See the utilization and day rate that make consulting work.
Day rates, engagement size and a pipeline that goes quiet. Built for independents and boutiques.
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The assumptions, benchmarks, and drivers behind your consulting projections.
Consulting is sold engagement by engagement, so this template models an engagement the way an order is modeled: a fee per engagement, a delivery cost, and repeat business from clients who come back. Delivery cost is the loaded cost of the days you or your team actually work, which is what turns a headline day rate into a margin. Repeat clients matter disproportionately because winning a returning client costs almost nothing compared with originating a new one.
Independent consultants typically bill between $60 and $150 an hour, with specialists above that, and a boutique of three consultants at market rates is roughly a $1M business. The number that decides whether the practice works is utilization: billable days divided by available days, and independents rarely sustain above 60 to 70 percent once selling, admin and gaps between engagements are counted. The model checks that revenue per engagement clears delivery cost by enough to fund the unbillable time.
The pipeline gap is the defining risk. A consultant is either delivering or selling, and the months spent delivering are the months the pipeline empties, which produces the feast-or-famine cycle every independent recognises. That is why the model is built around cash timing and repeat rate rather than around an annual revenue target: a practice with the same annual revenue can be comfortable or insolvent depending entirely on whether the gaps between engagements are two weeks or two months.
Everything you need to know about consulting financial modeling.
The numbers that matter most for a consulting business, calculate any of them free.
Average Order Value is the mean revenue generated per transaction. It is the fundamental r...
Repeat Purchase Rate measures the percentage of customers who make more than one purchase....
Gross Margin is the percentage of revenue remaining after subtracting the direct costs of ...
Customer Acquisition Cost is the total cost of acquiring a new paying customer, including ...
Runway is the number of months a company can continue operating at its current burn rate b...
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