Can I give you consulting math 101? You may already know this, and if so, forgive me.
- Decide how much you want to make. Let's use a nice round number. USD$100,000 (Not saying this is your number, yours may be USD$250,000, or whatever. This is just an example.)
- Remember to add health insurance, business insurance, error & omission insurance, taxes and fees and everything else. (Call an insurance broker, techinsurance.com, etc.)
- Let's call this compiled number USD$150,000. (again, just an example.)
- Double it. USD$300,000. You can expect no more than 50% utilization, and you have to spend time finding the next client/gig/opportunity. So you will only make half a years worth of hourly salary.
- Convert to hourly. There are 2080 working hours in a year. So you can have a vacation, call it 2000. Divide 300,000 by 2,000. That's 150. So your hourly rate is $150/hour.
- If you are 50% utilized, you will make USD$150,000 per year. With six months of time to find work, have a vacation, keep your certs alive, and expand your skill set.
Last modified: 202107100120