48 work weeks in a year (You'll need the vacation and sick days)
40 work hours in a week (Do you want to work more than this?)
1920 work hours in a year
Assume 30% of your time spent on marketing, networking, professional development, keeping records
1344 hours remaining
112 hours in a month
28 hours a week for revenue generating work
To make a gross income of $50,000, you'll need to bill at least $37.20 an hour
To make a gross income of $75,000, you'll need to bill at least $55.80 an hour
To make a gross income of $100,000, you'll need to bill at least $74.40 an hour
To make a gross income of $150,000, you'll need to bill at least $111.60 an hour
etc.
Assumptions:
- no down time during your work week
- marketing consumes the assumed amount of time
- your clients pay on time and in full
Don't forget about taxes, health care costs and other overhead! They can quickly add up to 50% of your gross income.
That gross income must stretch further than a salary you would earn as an employee.
Prepared for AAJA 2010 by Katherine Reynolds Lewis
Katherine(at)katherinerlewis.com * www.currentmom.com * @KatherineLewis
Freelance writing on money, work and family * group blog for entrepreneurs