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I worked backwards from my target salary, divided by the amount of workdays in a year, with an added 15% contracting rate modifier. So if I wanted to make 90k/
by AdrianRossouw 12y ago
I worked backwards from my target salary, divided by the amount of workdays in a year, with an added 15% contracting rate modifier.
So if I wanted to make 90k/y, my day rate would be :
> (90000 / 230) * 1.15 = $450 per 8-hour day.
PS: I don't like selling time in less than 4 hour batches either.
- gk1 12y agoI wouldn't recommend doing this. What does your target salary have to do with the value of your work?
- midnightmonster 12y agoIt's also a really naive calculation in that it assumes you will be able to fill nearly every working day out of the year with a full day's worth of paying work. When are you going to pursue leads, develop your sales funnel, learn new tech, and file your taxes?
- charlesnw 12y agoUm. You work for money. Generally one should have a target amount of money in mind (based on a budget). I rather like the calculation. I'll use it next time I do consulting.
- gk1 12y agoOf course you should have a budget, but what does that have to do with the value you're providing as a consultant? If you're asked why your hourly rate is $X, are you going to reply "because I have expensive hobbies?"
- jnbiche 12y agoDo you think this is how companies price their goods? I mean, sure you should calculate a bare minimum rate. But you should charge as much as the market will bare.