You should at the very least know your minimum hourly rate.....I mean, it’s the most fundamental number for your business. Anything else is gravy.
It’s pretty easy to come up with a very rough base:
1. Figure out what you need to make each month. This covers all your expenses, (mortgage, utilities, phone, etc) plus food, gas, fun money, savings deposit....you know, all you need to live life.
2. Multiply this by 3. ( 1/3 salary. 1/3 taxes, 1/3 to the business) (monthly nut)
3. Divide this by 20. (5 days a week, 4 weeks a month) (daily nut)
4. Divide this by 8. ( 8 hour workday) (hourly rate)
Say you need to get paid $5k a month to get by.
1. 5x3= $15k per month
2. 15000/20= $750 per day
3. 750/8= $93.75 per hour.
You need to make at least $750 a day (if you only work M-F) and in no case ever charge less than $93.75 per hour.
Now, of course this is a very basic, very rough formula with plenty of tweaking for circumstances....but should at least quickly give you an hourly rate that you can live on and grow your business. This also assumes you’re gonna make your nut, be it daily, weekly, monthly.....so if you’re short you can up the hourly rate, or if you make more on an assignment that can cover days you’re not earning.....it’s tricky, a juggling act. It’s very dependent on your local cost of living....someone in rural Mississippi would look at the above and see it as wishful thinking, where someone living in Manhattan would laugh, not even close man.
Please forgive me if this basic info is already known; I don’t mean to be insulting.....just the “how much do I charge” question comes up in every business forum out there....and the answer “what you’re worth” doesn’t help unless you know the basic formula.