For those bad at math

Ennis Ray Lynch Jr

I am thinking about putting this on my blog for the aid of the community at large but figured I would post here to see just how of base I really am. The basis for this is the continued series of questions I see asked and get asked which amounts to "What should I charge?". Just look up the annual salary you think you are worth with benefits and then look at the rate you should charge. (The rates include such things as benefits, PTO, Holidays, Marketing, Etc. But DO NOT INCLUDE travel expenses)

Fulltime USD Per Annum

Consulting Rate (6 month contracts)/hr

Consulting Rate (No Contract)/hr

20000

16.2990196078431

18.4722222222222

25000

20.3737745098039

23.0902777777778

30000

24.4485294117647

27.7083333333333

35000

28.5232843137255

32.3263888888889

40000

32.5980392156863

36.9444444444444

45000

36.6727941176471

41.5625

50000

40.7475490196078

46.1805555555556

55000

44.8223039215686

50.7986111111111

65000

52.9718137254902

60.0347222222222

70000

57.046568627451

64.6527777777778

85000

69.2708333333333

78.5069444444444

90000

73.3455882352941

83.125

95000

77.4203431372549

87.7430555555556

100000

81.4950980392157

92.3611111111111

105000

85.5698529411765

96.9791666666667

110000

89.6446078431373

101.597222222222

115000

93.719362745098

106.215277777778

120000

97.7941176470588

110.833333333333

125000

101.86887254902

115.451388888889

130000

105.94362745098

120.069444444444

135000

110.018382352941

124.6875

140000

114.093137254902

129.305555555556

145000

118.167892156863

133.923611111111

150000

122.242647058824

138.541666666667

155000

126.317401960784

143.159722222222

165000

134.466911764706

152.3958333333

Ennis Ray Lynch Jr

I didn't add all those line breaks in the message it just occurs when I did the table?

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Xiangyang Liu

Wow, I like the amount of money I could have made doing consulting and felt bad that I did not. :-D

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MidwestLimey

Excuses, excuses ... -0.0039485 per hour for you! :D

I'm largely language agnostic

After a while they all bug me :doh:

Ennis Ray Lynch Jr

Well it isn't an amount but a direct correlation. If you think you are worth, let's say $50k a year annual salary you should charge $41 an hour for a 6 month contract. In the end it will be about the same on the annual taxes.

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Happiness in intelligent people is the rarest thing I know. -- Ernest Hemingway

Ennis Ray Lynch Jr

Yeah, on my blog I am going to format it but when I post on CP I have to allow little errors in my comments so people can offer funny critiques.

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Happiness in intelligent people is the rarest thing I know. -- Ernest Hemingway

PIEBALDconsult

No, 92, and take the other six months off.

leppie

Would a simple function be easier? ;P IOW:

Fulltime USD Per Annum: x
Consulting Rate (6 month contracts)/hr: x/1226
Consulting Rate (No Contract)/hr: x/1082

:)

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Rob Graham

so how did you arrive at the numbers? does this take into account the value of benefits (health ins., 401K contributions, holidays, vacations)? employer share of FICA/Medicare? How did you arrive at the penalty factor for no contract?

Ennis Ray Lynch Jr

It would but then people would but I think people like tables. Plus looking at the divisor might incorrectly lead people to believe they only need to work that number of hours per year. When the actual result is only achieved with an effort to work 40 hours per week every week except for two weeks vacation and 10 holidays.

Need a C# Consultant? I'm available.
Happiness in intelligent people is the rarest thing I know. -- Ernest Hemingway

Ennis Ray Lynch Jr

It takes full into account health and benefits and fica medicare. There is some fudge factor based on down time between contracts. Up to %35 of your billable hours could be spent looking for contracts in some cases. Technically this is work, hard work, and needs to be accounted for. I like to think it can take up to 4 weeks to find a 6 month contract so I use, in my personal calculations a fudge factor of 8 weeks per year or 15% of available time as down time. The best way to use the number, let's use $50k again, is to say 41*1600 = 61,500 total expected revenue per year. $50k *.15 = FICA = $7500. Which leaves $4,000 for benefits. Which is a reasonable amount for someone with a $50k a year base salary. (I said reasonable not good) Of course, if you work more than 40 per week or have a better than average turn around on a contract you get the potential to earn profit.

Need a C# Consultant? I'm available.
Happiness in intelligent people is the rarest thing I know. -- Ernest Hemingway

Member 96

Why'd you stop at 180k? :) I'm guessing if I was a consultant my hourly rate would be through the roof. :cool:

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Member 96

:laugh: Even if there aren't any errors you'll get lot's of little critiques from this anal retentive bunch. :)

"The great pleasure in life is doing what people say you cannot do." - Walter Bagehot

Bruce Chapman DNN

It's an interesting table. Funnily enough you are within a couple of percent of what I charge / think I should earn if I were to get a job. Now I'd like to see a spreadsheet on how I can convince people that a $20/hr outsourced developer is not comparing apples with apples. Incidentally, do you advertise your rates or just save them up for when people ask?

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Ennis Ray Lynch Jr

I don't publish them online because there is so much competition online and many people will not call if they see you as too expensive. Its not top secret though, if it's something you are interested in send an email and I will give you the skinny.

Need a C# Consultant? I'm available.
Happiness in intelligent people is the rarest thing I know. -- Ernest Hemingway

ftw melvin

I'd lose everything after the second decimal place for readability if you are going to post it. Interesting calculation, as a rule of thumb you are saying $1000 ~= 80c an hour. Converting this into English, if Joe Senior Dev earned around £40,000 per year they should only consider resuming contracting, after say six year's permanent frustration, if they were happy you could get £32 per hour consistently. I think you've made my Joe's mind up!

ftw melvin

http://www.contractorcalculator.co.uk/[^]

Ennis Ray Lynch Jr

The results of that calculator are no where near my results. I think mine are more realistic.

Need a C# Consultant? I'm available.
Happiness in intelligent people is the rarest thing I know. -- Ernest Hemingway

ftw melvin

I'm sure yours are well researched, the tax conditions in the UK compared to the USA are quite different which could account for the difference. Just wanted to show you an alternative.