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1.4 is a better multiplier.
Take your salary, multiply by 1.2 (to account for employer paid taxes/benefits), and then divide by 2,000hrs to get the rate. I would say that at 3-4 years of experience if you are making $100k then your rate should be $60/hr
$60 an hour? Way too low. For an M&A C/SC you should be asking $150/hour.
I also think you need to account for other things, specifically lack of vacation/PTO/holidays and risk of being a contractor.
For PTO it’s easy, just take number of hours you want and subtract from 2080. So I’d say ~1900 which is 4.5 weeks of holiday, sick, and vacation time. For risk, that’s up to you, but there should definitely be a premium there to build in.
Also make you calculate all the benefits costs in addition to both portions of FICA tax. Health (medicinal), dental, STD, LTD can add up. You’ll also be missing things like 401k match and other employer benefits.
Definitely no less than 2x multiplier.
I’d be billing myself out much higher if I went independent. $250 or so for that level is reasonable.
M1 totally depends. Are they looking for 40 hours a week or just 10? Is the project for a few months or a year?
Companies are willing to spend a ton of the hours are limited (usually nets same on your end but those rates aren’t u heard of depending on skills.)
I would target far higher than 1.2x base. Try 3-4x and/or consider a performance bonus for achieving certain outcomes
Be careful though. I know the haters are going to say “price yourself based on the value you are providing regardless of your current salary” ... but think hard about how likely it is that you are providing value far above and beyond what your current employer is paying you.