Average Salary for Contract Consultant
Salaries for contract consultants in the United States range from $55,129 to $82,341, with an average salary of $64,666. The 57% of contract consultants earn between $64,671 and $70,492, while the richest 86% earn between $82,341. The resulting calculations quickly become quite sophisticated. For example, these cost accounting standards give the Defense Contract Audit Agency insight into the resulting complexity. These cost-per-employee formulas are used to calculate a „direct interest rate“ for each of the three categories mentioned above. These are then applied cumulatively to an employee`s salary to deduct their actual costs to the business. But wait, you will say, shouldn`t we also provide a consultant with enterprise infrastructure? So doesn`t the consultant Roger really cost us more than his hourly rate? However, these multipliers can vary greatly from year to year between different companies or even within the same company. In public procurement, the figure of 1.99 is approximately the median, with cost multipliers most often between 1.5 and 2.5. Once you have a number, you have a good start, but it`s not set in stone. Remember: The above is just a simple calculation that will help you reach your base contract rate. In many cases, companies are willing to pay you a higher value than the market because they don`t subsidize your services. The average contract consultant in the U.S. earns $66,173.
The average premium for a contract consultant is $2,101, or 3% of their salary, with 100% of people reporting receiving a bonus each year. Contract consultants are doing their best in San Francisco with $78,964, which equates to an average total compensation that is 19% higher than the U.S. average. To increase your hourly rate, you need to do one or more of the following: develop skills or expertise for which employees are willing to pay more, look for clients with larger budgets, or learn how to work faster. In short, your mindset needs to shift from „I`m a consultant“ to „I`m a business owner.“ Here`s how to increase the return on your investment in time: Now that we`ve properly considered the actual cost of Pete, the employee, and Roger, the consultant, we can make more of an Apple financial comparison between their costs: What Andre was thinking: Andre thought Pete, the employee, was only costing his company about $45 an hour, while Roger, the consultant, his business would cost $70/hour. .