2. Why do you need an hourly rate?
• So that you can quote accurately when looking for work
• To ensure that you work for a worthwhile return
• It assists with budgeting
3. What you need
What annual salary do you
Be realistic in estimating
how much time you'll have want?
for work.
What are your goals?
For example, ensure you
allow for holidays, sick
What is a realistic estimate of
days, administration time,
and non-work days. how many working days you
Make sure you know your have?
minimum needs to cover
business and living costs.
4. The Calculation: Working Days
• There are 52 weeks in the year with five working days each. Total: 260
days
• Under Australian law, workers get 4 weeks of annual leave. That
subtracts 20 days from the total leaving 240 days
• Under Australian law, workers are entitled to 10 days of sick leave. That
leaves 230 days
• You'll need to allow for administration time to run your business. That
will use about 20% of your time. That leaves 184 days
• Lastly, you need to subtract public holidays. That's another 10 days
leaving 174 working days
5. The Calculation: Earning Goals
• I suggest setting three earning goals
• The first goal is survival - the minimum salary you need to keep the business
afloat and survive
• The second goal covers business expenses and allows you to live
comfortably
• The third goal covers business expenses and allows you to enjoy some living
luxury
6. The Calculation: Setting Rates
For this, l going to set three earning goals of $50000,
$75000 and $100000 per year
$50000/year $75000/year $100000/year
174 days $287/day $431/day $575/day
8 hours $36/hour $54/hour $72/hour
7. The Take-Away
• Don't accept work or quote for work below your minimum
hourly or daily rate. It might be hard to do that you'll be
better off putting your efforts towards better laying clients
• Never be scared of charging your highest, aspirational
rate
