PPSY3 — Reference from online talk recognized by BNO
1 Step 1 → List Your Monthly Expenses
Think about all your necessary expenses and write them down.
Personal living cost:
* This could be divided into fixed expenses and variable expenses.
Business Cost:
* For this example, one will be given.
This is the amount you need per month according to the needs described.
1.1 Find the amount you need per year
Total Business Cost + Total Living Cost × 12 Months = Amount you need per year
This is the amount you need per year according to the needs described.
2 Step 2 → Find out available work-days per year
working days × working hours/day = available hours per year
This is the amount of hours available during the whole year.
2.1 From these hours that you will work, only 60% are really billable.
This is the realistic amount of hours per year that you are able to bill.
3 Step 3 → Calculate your hourly rate
3.1 Adjustments to keep it profitable: