I would say this formula only derives the minimum reasonable rate as a freelancer. It basically ends up netting you the same as you would in a salaried job (adj

I would say this formula only derives the minimum reasonable rate as a freelancer. It basically ends up netting you the same as you would in a salaried job (adjusted for risks/expenses). But I would say you should be making at least a bit more this way, for it to make sense as a career path. For comparison, I'm working as a contractor now and making between 2 and 3 times what I could make in a perm position. That's adjusted for expenses, sick days etc. It does not cover vacation though and it assumes that I am able to line up new contracts back-to-back, which may not always be the case.