6 ms·

$175/hour * 40 hours/week * 50 weeks/year = $350,000/year, for anyone else (like me) who can't immediately estimate equivalent yearly rates.

by wging 16y ago

slashcom 16y ago
$x/hour * 40 hr/wk * 50 wk/yr = 2n1000 The general rule is always "times 2, add 3 zeros" to do it in your head.
- jurjenh 16y ago
  That would never work. You'd find some garbage in the output, or even worse, get a core dump due to n being undefined. I think you mean 2x * 1000. .... or I've been refactoring my code for too long. But yes, this is generally the rule I use as well, take the hourly rate and double it and add a K (eg $30/hr = $60K) Doesn't include holidays, sick leave or efficiency trade-offs (billable time vs maintenance, research). Personally I use an estimate of about 75% efficiency to get a realistic answer, so then your formula becomes 3/4 * x * 1000 So at $175/hr I'd expect something like 130,000 annually. Given that its said he's quite frugal and doesn't mind hard work, it could well end up being around the 250-300K, but I'd expect he'd end up burning out after a year or 3.
  - rapind 16y ago
    For 75% efficiency I assume you mean 3/4 * 2 * $175 * 1000 = $262,500 / year. 3/4 on it's own is less than %40 efficiency. I.e. Taking half the year off. You also just stated the same thing slashcom did while meaning to correct him?
    - jurjenh 16y ago
      yes, quite right... maybe I should go and lie down somewhere... But hey, at 75% efficiency at a half year's work at that rate I could probably afford it...
      - rapind 16y ago
        quite true ;)
techiferous 16y ago
But remember that there is non-billable work (accounting, etc.) and a 15.3% self-employment tax. And also remember that there are probably not 50 weeks of 40 hours/week at this company but rather short-term or part-time work. And you are paying for your own benefits. I've found a good (albeit a bit conservative) rule-of-thumb is to convert the hourly wage into the yearly salary. Working as a consultant for $175/hour is similar to being employed at $175K/year. EDIT: The U.S. federal self-employment tax for 2011 is 13.3% (15.3% was for 2010).
- ratsbane 16y ago
  A minor correction: it's not as bad as 15.3%. The self-employment tax is really just the company share of FICA withholding (6.2%) plus Medicare withholding (1.45%) If you're an employee you pay 6.2%+1.45%=7.65% and your employer pays the same. If someone else (employer) is not paying the 7.65% then you do. However, for 2011 the FICA rate for employees is 4.2% instead of 6.2%, so the self-employment tax remains effectively 7.65%. But that's only for the first $106,800 in earnings - everything above that is not subject to FICA and Medicare for employer and employee.
  - ryanwaggoner 16y ago
    Another (even more) minor correction: there's no limit on the Medicare tax, currently 1.45%.
  - nopassrecover 16y ago
    As "bad" as 15%? Tax is at least 38% here in Au for that wage (was 60% not so long ago).
    - jackowayed 16y ago
      Well, it's 15% for FICA (employee + employer), but there's also normal income tax, which starts at 10% and gets up to 35%. And then the state and, depending on where you live, the city have income and/or payroll tax as well (usually in the single digits).
    - 16y ago
deleted 16y ago
[deleted]
schintan 16y ago
Much shorter, just double the hourly rate for yearly salary in K's.
rmc 16y ago
Eeek, only 2 weeks holidays per year? :(
JabavuAdams 16y ago
Yearly revenue = hourly rate * 2 (in thousands) $40/hr => 80k/y $120/hr => 240k/y

$175/hour * 40 hours/week * 50 weeks/year = $350,000/year, for anyone else (like me) who can't immediately estimate equivalent yearly rates.

by wging 16y ago

$175/hour * 40 hours/week * 50 weeks/year = $350,000/year, for anyone else (like me) who can't immediately estimate equivalent yearly rates.

slashcom 16y ago

$x/hour * 40 hr/wk * 50 wk/yr = 2n1000 The general rule is always "times 2, add 3 zeros" to do it in your head.

jurjenh 16y ago
That would never work. You'd find some garbage in the output, or even worse, get a core dump due to n being undefined. I think you mean 2x * 1000. .... or I've been refactoring my code for too long. But yes, this is generally the rule I use as well, take the hourly rate and double it and add a K (eg $30/hr = $60K) Doesn't include holidays, sick leave or efficiency trade-offs (billable time vs maintenance, research). Personally I use an estimate of about 75% efficiency to get a realistic answer, so then your formula becomes 3/4 * x * 1000 So at $175/hr I'd expect something like 130,000 annually. Given that its said he's quite frugal and doesn't mind hard work, it could well end up being around the 250-300K, but I'd expect he'd end up burning out after a year or 3.
- rapind 16y ago
  For 75% efficiency I assume you mean 3/4 * 2 * $175 * 1000 = $262,500 / year. 3/4 on it's own is less than %40 efficiency. I.e. Taking half the year off. You also just stated the same thing slashcom did while meaning to correct him?
  - jurjenh 16y ago
    yes, quite right... maybe I should go and lie down somewhere... But hey, at 75% efficiency at a half year's work at that rate I could probably afford it...
    - rapind 16y ago
      quite true ;)

techiferous 16y ago

But remember that there is non-billable work (accounting, etc.) and a 15.3% self-employment tax. And also remember that there are probably not 50 weeks of 40 hours/week at this company but rather short-term or part-time work. And you are paying for your own benefits. I've found a good (albeit a bit conservative) rule-of-thumb is to convert the hourly wage into the yearly salary. Working as a consultant for $175/hour is similar to being employed at $175K/year. EDIT: The U.S. federal self-employment tax for 2011 is 13.3% (15.3% was for 2010).

ratsbane 16y ago
A minor correction: it's not as bad as 15.3%. The self-employment tax is really just the company share of FICA withholding (6.2%) plus Medicare withholding (1.45%) If you're an employee you pay 6.2%+1.45%=7.65% and your employer pays the same. If someone else (employer) is not paying the 7.65% then you do. However, for 2011 the FICA rate for employees is 4.2% instead of 6.2%, so the self-employment tax remains effectively 7.65%. But that's only for the first $106,800 in earnings - everything above that is not subject to FICA and Medicare for employer and employee.
- ryanwaggoner 16y ago
  Another (even more) minor correction: there's no limit on the Medicare tax, currently 1.45%.
- nopassrecover 16y ago
  As "bad" as 15%? Tax is at least 38% here in Au for that wage (was 60% not so long ago).
  - jackowayed 16y ago
    Well, it's 15% for FICA (employee + employer), but there's also normal income tax, which starts at 10% and gets up to 35%. And then the state and, depending on where you live, the city have income and/or payroll tax as well (usually in the single digits).
  - 16y ago

deleted 16y ago

[deleted]

schintan 16y ago

Much shorter, just double the hourly rate for yearly salary in K's.

rmc 16y ago

Eeek, only 2 weeks holidays per year? :(

JabavuAdams 16y ago

Yearly revenue = hourly rate * 2 (in thousands) $40/hr => 80k/y $120/hr => 240k/y