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Feature

Your rates

What should I charge for my time?

Issue: 8.4 (May/June 2010)
Article Description: No description available.
Article Length (in bytes): 4,352
Starting Page Number: 13
RBD Number: 8408
Resource File(s):

Download Icon 8408.zip Updated: Monday, May 3, 2010 at 7:56 PM

Related Link(s): None
Known Limitations: None

Excerpt of article text...

One of the questions people ask when they start their business is what they should charge. Too much and they will not find work and too little and they are not taken seriously. So this article discusses a way to find an hourly/daily rate based on what an employed developer would earn for the same job.

From a salary to an hourly rate

Let's say you want to earn the same amount as an employed developer. What hourly rate do you need?

For a developer we calculate in this article a monthly total salary of 4,000 Euro. If you do the calculation yourself, you should modify all the values to your country's currency. Taxes, social costs, and the numerical values of the amounts are different everywhere in the world. So in Germany we have a statistical average yearly salary of 40,000 Euro for a beginner and something around 75,000 Euro for an expert software developer. But that really depends on qualifications.

So we use 4,000 per months for the salary. With vacation and Christmas gratification we have 13 months. Or a total salary per year of 52,000 Euro. From that, our example developer needs to pay tax (in Germany 11,468 Euro). Also he needs to pay 10,008 Euro for the social system, mainly for the state pension and health insurances. So the net salary for this developer is 30,522 Euro.

...End of Excerpt. Please purchase the magazine to read the full article.

Article copyrighted by REALbasic Developer magazine. All rights reserved.


 


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