The TJM, or taux journalier moyen (average day rate), is the price excluding VAT of one day of a consultant's work. An IT consultancy (ESN) sets it to cover the consultant's cost over the billed days only, then to earn its margin. The monthly invoice equals the TJM multiplied by the days approved in the CRA (the monthly activity report).
This article explains how to calculate a TJM for an employed consultant and for a freelancer, how many billable days to count, and how to read the margin.
Article checked on 11 November 2026.
What is the TJM?
The TJM is the price of one day of a consultant's work, excluding VAT. It is set in the contract or the purchase order, and multiplied each month by the days the client has approved. It is called an "average" rate because it smooths very different days into one standard day: travel, meetings, busier or quieter days.
In an IT consultancy, one assignment has two day rates:
- The selling day rate, billed to the client.
- The daily cost, or buying day rate when the consultant is a freelancer or subcontractor: what the day costs the consultancy.
The gap between the two is the assignment's gross margin per day. The TJM also differs from a fixed price: in a fixed-price deal, the client pays for a deliverable at a set price, whatever the number of days spent.
How to calculate a TJM in an IT consultancy
For an employed consultant, the calculation has four steps: count the billable days in the year, calculate the consultant's annual cost, derive a cost per billed day, then apply the target margin. The classic trap is dividing the salary by 218 or 365 days instead of the days actually billed.
- Billable days = weekdays − weekday public holidays − paid leave − other non-billed days (RTT, bench time, training, sickness).
- Annual cost = gross salary × (1 + employer contribution rate) + other annual costs (equipment, health insurance, travel not rebilled).
- Cost per billed day = annual cost ÷ billable days.
- TJM = cost per day ÷ (1 − target margin).
The days of 2026. The year has 261 weekdays in France, 9 of which are public holidays (public holidays, Service-Public). After 25 working days of paid leave, i.e. five weeks (paid leave, Service-Public), 227 remain.
Example with assumptions to replace with yours: salary of €50,000 gross a year, 45% employer contributions, €3,000 of other costs, 10 days of RTT, training and bench time, target margin of 30%.
| Step | Calculation | Result |
|---|---|---|
| Billable days | 227 − 10 | 217 days |
| Annual cost | 50,000 × 1.45 + 3,000 | €75,500 |
| Cost per day | 75,500 ÷ 217 | €347.93 |
| TJM | 347.93 ÷ (1 − 0.30) | €497.04 excluding VAT |
The contribution rate is the one from your payroll: the Urssaf simulator gives the employer cost of a salary in France.
How to calculate your TJM as a freelancer
A freelancer calculates their TJM the other way round: they start from the income they want to pay themselves, add their contributions, insurance, business expenses and a reserve for months without an assignment, then divide the total by the days they really expect to bill. That number of days is lower than an employee's.
What reduces a freelancer's billable days:
- Business development and admin: meetings, quotes, invoicing, bookkeeping.
- Bench time: a few weeks between two assignments are enough to pull the year down.
- Leave and training, which no employer pays for.
Example: a freelancer who targets €70,000 of annual revenue to cover their pay, contributions and expenses, and who counts on 190 billed days, must bill at least €368 excluding VAT per day (70,000 ÷ 190). If they go through a consultancy, it adds its margin to the TJM billed to the end client. In umbrella employment (portage salarial), the umbrella company deducts its management fee from revenue.
TJM and margin: margin rate or markup
An IT consultancy tracks its margin as a share of the selling day rate: a 30% margin on a €500 TJM leaves €150 to the consultancy. Adding 30% to the cost gives a lower price and a lower actual margin. Confusing the two distorts the price offered to the client.
| Cost per day | Method | TJM | Margin per day | Margin as a share of the TJM |
|---|---|---|---|---|
| €350 | Cost ÷ (1 − 30%) | €500 | €150 | 30% |
| €350 | Cost × (1 + 30%) | €455 | €105 | 23% |
The actual margin of an assignment is read each month, from the approved days: a non-billed absence day is still paid to an employed consultant.
What makes a TJM vary
A TJM depends first on the market for the skill: a rare technology, long experience in a sector or a certification required by the client push it up. The length and conditions of the assignment matter too, such as the share of remote work, travel or on-call duty.
The criteria that come up in a negotiation:
- The skill and its scarcity: a sought-after stack and few available profiles.
- Seniority: years of experience on the same type of assignment.
- The length of the assignment: a long assignment is often negotiated at a lower TJM.
- The conditions: on-site presence, travel, on-call duty or unusual hours, to be billed separately if the contract provides for it.
- The chain: a consultant placed through a consultancy or an intermediary carries each one's margin.
Before setting a TJM, compare it with the assignments you have already billed for the same profile: it is the most reliable reference, and it is in your own data.
From TJM to invoice: the role of the CRA
A TJM only makes an invoice once multiplied by the approved days. In time-and-materials work (régie), those days come from the activity report, the CRA, signed by the client. A half-day is usually billed at half the TJM, depending on the contract. The purchase order sets the TJM and the number of days bought.
Example: 20.5 days approved in the CRA × €500 excluding VAT = €10,250 excluding VAT. Rebillable expenses are added on a separate line. The CRA, its signature and how it becomes an invoice are covered in our article on the CRA (activity report), and the tooling of a consultancy on our IT consultancy software page.
In Marvin: the TJM on the assignment, the margin as CRAs come in
In Marvin, each assignment carries the TJM billed to the client and the consultant's pay basis, day rate or salary, and the margin is calculated accordingly. It is locked at the approved CRA and can be read by assignment, by consultant and by client. The consultant only sees their own day rate.
Once the client has signed the CRA, the day-rate invoice is prepared as a draft from the approved days. See Marvin's consultant space.
FAQ
What is the TJM?
The TJM, short for taux journalier moyen, is the price excluding VAT of one day of a consultant’s work. An IT consultancy bills it to its client, a freelancer to the consultancy or the end client. The monthly invoice equals the TJM multiplied by the days approved in the CRA.
How do you calculate a TJM?
Add up the consultant’s annual cost (gross salary, employer contributions, other costs), divide it by the number of billable days in the year, then apply the target margin as a share of the selling price: TJM = cost per day ÷ (1 − margin). With a cost of €348 per day and a 30% margin, the TJM is €497.
How many billable days should you count in a year?
In 2026, France has 261 weekdays, 9 of which are public holidays. After 25 working days of paid leave, 227 remain. Then subtract RTT days, bench time, training and absences: with 10 more days, 217 billable days remain.
How does a freelancer calculate their TJM?
They start from the income they want to pay themselves, add their social contributions, insurance, expenses and a reserve for periods without an assignment, then divide by the days they really expect to bill. That number is lower than for an employee: business development, admin and bench time are not billed.
What is the difference between margin and markup?
The margin rate relates the margin to the selling price, the markup relates it to the cost. A consultancy usually tracks margin as a share of the TJM: a 30% margin on a €500 TJM leaves €150. Adding 30% to a €350 cost would give €455, an actual margin of about 23%.
Is the TJM excluding VAT?
Yes. The TJM is expressed excluding VAT; VAT is added on the invoice, at the rate that applies to the service. A TJM of €500 excluding VAT gives an invoice of €600 including VAT per day at a 20% VAT rate.