That’s a difficult question to answer for the budding freelancer and I discuss it in my Managing Web Projects ebook but it is a bit complicated and a bit of a horrible formula to work out your hourly rate (and please excuse me it’s been a while since I’ve done algebra and brackets confuse me ):
((H X D) X 52 ) – DO)
E = Earnings
T = Tax Rate
OU = Outgoings
PM = Profit Margin
H = Hours Worked A Day
D = Days Worked a week
DO – Days off per year
Er….. Right. I’m confused now as well!
I’ve given an example of this formula at work when I wrote about Managing Web Projects #4 – The Quote but even so, it’s a bit of a handfull isn’t it?!
Because none of us want to go through the terror of trying to work that little lot out (especially as I’m bound to have put a bracket in the wrong place somewhere I present
The Hourly Rate Calculator.
Simply fill in your desired earnings, outgoings and a couple of other bits and voila! There’s what you should charge per hour.
You can all thank me later