[Baypiggies] How do you calculate your hourly wage?
glen at glenjarvis.com
Mon Feb 9 23:38:38 CET 2009
The largest mistake I ever made in contracting was not charging
the rate that the Small Business Association (SBA) in San Francisco
taught me to charge. It just seemed so high, and I doubted (and still
doubt) I was *worth* as much as that. I was also brand-spanking new to
Python (I've only been coding in Python a little over a year), so
there is some justification for me to be less than what you would
However, here's the calculation: take the calculation you
mentioned to find your normal hourly rate (minus benefits). Then,
multiply the number by 2.5.
That's a rough estimate. If you can calculate your benefits more
accurately, great! But, realize that there is more than just benefits
involved here. You won't be working '40 hours per week' at the new
rate. A good deal of time is spent in administration, billing, sales
(getting new clients), etc. So, this *really* needs factored in. How
much time you spend doing these necessary evils, compared to coding
varies a lot with people.
Some people, depending upon their profession, are only 'billable'
30% of the time. I feel it's much higher for programming. Because I'm
still learning a great deal, I spend a lot of time learning within a
project, so I bill a very small portion of the amount of time I put
into a project. However, I think that's just me and my newness.
The SBA courses are completely free and are an *incredible*
resource if you wish to learn how to avoid gotchas and pitfalls on the
business side. Ask me off list and I'll forward some details for you
on the courses.
Hopefully that helps a little...
Take care and good luck. Happy Coding and Contracting =)
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glen at glenjarvis.com
On Feb 9, 2009, at 2:22 PM, Stephen Cattaneo wrote:
> Hi friends,
> I've only had one professional position since college. I was paid
> salary. My company recently downsized 40% of the company (myself
> included). I'm looking for new work.
> I'm open to contract jobs, but they want to know how much I charge
> hourly. I'd assume they do not cover things like 401k/dental/
> medical for such a position; I'd like to take these things into
> consideration when talking wages.
> Do you guys use this formula (or something similar) and if so, what
> value do you use for your modifier?
> hourlySalary = yearlySalary / 52 * 40 # 52 weeks in a year, 40
> hours in a week
> benefits = hourlySalary * benefitsModifier
> totalHourlyWage = hourlySalary + benefits
> I was thinking something between 5% and 15% -- Does this seem
> reasonable in your experience?
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