#SALARY TO HOURLY CALCULATOR HOW TO#
#SALARY TO HOURLY CALCULATOR SOFTWARE#

That's a total of $518 for technology and software monthly costs.

A phone with robust features (such as an iPhone) - $115.

The fastest internet connection you can get - $85.

A reliable new laptop, after every two years - 25$ per month, if you pay $600 for a laptop every two years.

Additional invoicing and accounting software - $30įor the necessary technology and devices, you have to make the following expenses:.

Additional, business specific software - $29.

Time tracking software - $20 (0$ if you use Clockify).Various types of freelancers will need various software - developers will need a reliable coding editor, graphic designers will need an efficient graphics editor, and translators will need a good computer-assisted software tool.Īpart from that, most freelancers will make use of time trackers (to track their exact billable hours), project management software (to collaborate with other freelancers on projects), as well as invoicing and accounting software (to bill their clients and manage their revenue).įor the necessary software, you have to make the following yearly expenses: This is a vital factor - in today's time, no one performs their freelance work without the help of certain software and technology. These numbers stack up to $2,629 of overhead-expenses per month, without the software and technology costs. Home office rent (including coworking membership) - $350.In addition to that, here are the average monthly overhead-expenses you also have to consider: If the average freelancer hourly rate is $19, that amounts to $3,040 monthly salary for 20 eight-hour days per month (excluding weekends) - we'll take this figure as a freelancer's clean average salary. The overhead-expenses include all business expenses that are not directly associated with your labour, or the service you provide, and this includes taxes, insurance and utilities. The general overhead-expenses for your freelance business To make sure your hourly rate is enough to cover your expenses, you should consider your general overhead expenses and your technology and software costs.

You'll have to consider and cover them on your own, as opposed to a traditional job where employers reimburse most of the expenses. When freelancing, you should first consider the expenses and costs of your freelance business - otherwise, these figures may eat up your desired salary and most of your profit. The hourly rate high enough to cover your expenses Determine number of hours of work in a dayįormula: Desired monthly salary ÷ number of work days per month ÷ number of work hours per dayĮxample: $10,000/month ÷ 22 days ÷ 8 hours = $56/h rateĬalculate your ideal hourly rate Desired monthly salary:.Determine number of work days (per month).Determine how much your want to earn (per month).Hourly rate that's enough reach desired salaryĬalculating hourly rate based on desired salary.Hourly rate that's enough to cover expenses.To avoid such pitfalls, here are two main ways to help you determine your hourly rates: If you undercharge, you won't be able to make all your hard work pay off and make a profit - once you set rates that are too low in your field, it's difficult to price up when you want to, as your existing clients get accustomed to your current low rates. If you overcharge, you may turn away clients, who'll go to other freelancers, those that offer the same quality work, but at a lower price. Here's how you can calculate your hourly rate, determine how much you should charge for your services, and avoid underpricing yourself. The two simplest ways to calculate your hourly rate are: a) decide how much you want to make a month, or b) see what others are charging and go with that.

#SALARY TO HOURLY CALCULATOR HOW TO#

Learn more: How to calculate billable hours | Average hourly rates (data) How to determine your hourly rateĭetermining the right hourly rate is the biggest challenge for any freelancer - you're always in danger of charging too little or too much, and both extremes will have a negative impact on your job prospects.

Salary to hourly calculator