[runako]

It's also $137/hr or $121/hr, depending on whether you assume 8- or 9-hour workdays. In IT consulting, these are not high rates.

Also keep in mind: A day rate implies consultant (i.e. non-employee) work, which further implies <100% utilization. Assuming he only works weekdays and takes 4 weeks of vacation (comparable to working at a BigCo), 80% utilization gets you to ~192 days, or $210k.

That's probably optimistic, though. This math further assumes he is able to sell 80% of his time in the 20% of his nonbillable time, and that he doesn't lose any billable time due to scheduling issues (i.e. each client is ready to go as soon as he is). Depending on his business, he'll have to spend some cash on overhead (accountants, lawyers, etc.).

[tragic]

My brother works as an IT project manager consultant for big old companies that will remain nameless. Daily rate something like £450-500, so call it $750.

Under utilisation is true enough, but you also have to take into account the tax efficiencies you can put in place as a freelancer (in the UK at least), which means he's still well enough off to have a Porsche 911 and a flat in the Swiss Alps.

Nice work if you can get it.

[ido]

Yep. If you charge ~$x/h as a freelancer you're probably taking home a similar amount to someone making $xK/year once you hit your stride and have a lot of contacts coming to you with work (which can take years to build up).