[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.