Sg2009wc:rate
From She's Geeky Wiki
Title: Reverse Engineering Your Rate
Session: Bay Area Jan 2009
Convener:Stacey Banks
Notes Taker:
Attendees:
Notes:
Why you must evaluate
- Changing from W2 to 1099
- Starting a business
- Applying value to software
- Overlooked costs
- Operational costs
- Medical
- Social Security / Medicaid (FICA)
- 401k matching
- Tuition
Information needed for reversing
- Expenses
- Income
- Workable (billable) hours
- Profit margin goals
Example
Goal salary $100,000
Work days 225
FICA = $7,650
401k @ 6% matching = $6,000
Health $3,600
Total expenses $22,100
Total income $100,000
Total $122,100
Divided by work hours (1800):
Breakeven $67.83
10% profit $74.62
Will attach speadsheet shortly.
20% profit $81.40
Media:Reverse Engineering Your Rate.xls Sample Excel File is hosted off-site Excel File