[danielheath]

There's a little under 2000 working hours in a year of fulltime work; you can charge approx double to cover your cost of sales / offer flexibility.

[biztos]

Am I missing something, or do you not have any vacation?

[rolisz]

Paid vacation still counts towards your "work hours", because your employer pays for them.

[pdonis]

But if you're a contractor, you don't have an employer, so you have to divide the total amount you want to make in a year by the actual hours you expect to work, which won't include time off, since your clients won't be paying you for time off.

[wishinghand]

I think that's the idea by diving by 1000. The math is assuming that you won't work half the time.

[danielheath]

If you work 40 hours * 50 weeks you have 2000 hours (and two weeks off).

If you take 12 weeks off instead of 2, you get 1600 hours.