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by lostboys67 3274 days ago
The rule of thumb I was told for contractors is you calculate your day rate by multiplying your FTE rate by 3

Though you have to watch for IR35 a lot of contractors would fail ir35 and be stuck with a huge tax bill

1 comments

In my experience so far and what I was told was bank on 1000hrs worked in a year.. figure out how much you want to make in that many hours. You need to triple your FTE salary because insurance, taxes, and savings(401k)). For me that comes to about $105-125 an hour.

My experience is that your price is set by how much work you want. When I first started I had a really low rate, and I complained to a much more seasoned freelancer that I had to much work.. and he responded with something that seems so obvious now, but at the time I didn't even think this way. He told me, "If you have to much work, you aren't charging enough." So over the next 3 or so months I kept raising my rates until I found a happy medium between the # of clients I have and how much I'm bringing in.

My work has benefited from it because I'm not having to work 50hr weeks to make the same amount of money. The hours my clients are getting are much higher quality, and my work life balance is sane.