Some of the calculations here are fine, but it leaves out by far the most important cost of contracting: dead time. If you're a contractor and you work 2000 hou

Some of the calculations here are fine, but it leaves out by far the most important cost of contracting: dead time. If you're a contractor and you work 2000 hours/year (50 weeks) for five straight years, you've got a sweet gig. Most consultants work 3 months on, 3 weeks off, 6 months on, 1 month off, etc. So don't forget to factor this in. I recommend not relying too much on calculations: the market sets your price, not a calculation. If your peers charge $100/hour, it doesn't really matter if your spreadsheet tells you to charge $70 or $150. Also, what's with the reference to price fixing at the end? Have people really gotten in trouble for announcing their consulting rate? That would seem extremely odd to me. Most contract designers or developers have a standard rate, and don't keep it a secret.