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I usually go by my expected net income for the year. Then I break it down to whatever increments they want to pay you. Typically it’s hourly.
$200,000 / (52 * 5 * 8) = $96/hr rate
(52 week * 5 days / wk * 8 hrs / day
This is super helpful. Thank you for sharing this.I have been wondering how to calculate it myself.
Contractors don’t get paid PTO. You have to adjust accordingly.
A lot of recruiters will base it on 260 working days. Don’t fall for it. If you base it on 260 days, you’ll make *less* than if you were hired fulltime. The real number is around 210 days. Basing your rate on 210 days will pad it to pay for vacation days and other PTO.
These are the minimums for long-term:
$200K fulltime=$120/hour freelance long
$150K FT=$90/hour FL long
$100K FT=$60/hour FL long
These are normal short-term freelancer rates:
$200K fulltime=$160/hour freelance short
$150K FT=$120/hour FL short
$100K FT=$80/hour FL short
For a long-term contract, try to negotiate a number between the two ranges.
If you’re working through a staffing firm, this complicates the numbers because they charge the company almost double. This may lower what the staffing firm is willing to pay you. Try not to get screwed. However, you can use this to your advantage if you have the option to convert to full time.
So helpful, thank you!! I’m working through a staffing firm and they seem pretty firm on their number. But the client is looking to convert after a stint or two, so hopefully I can command more at that point!
I go with essentially the same math. I still need to eat!