Base Hourly Rate Calculation Sheet
Base Hourly Rate Calculation Sheet Use the chart below to help calculate your base hourly rate. Then use this rate to configure your retainer or package pricing.
Item & Explanation
Sample Numbers
Desired annual income
$50,000
Step 1. Configure Billable Hours & Subtract NonBillable Hours Number of hours you want to work (Hours per week x 52 weeks in a year. Ex: 8 hours per day x 5 days = 40 x 52 = 2080 hours) Sick days (12 days per year, 8 hours per day. 12 x 8 = 96) Holidays off (7 days per year, 8 hours per day. 7 x 8 = 56 Vacation days off (10 days per year, 8 hours per day. 10 x 8 = 80) Your biz admin work (20 days = 160 hours) Time for marketing your biz (50 days = 400 hours) Total number of billable hours (add up columns above and subtract from initial hours available. 2080 – 792 = 1288)
2080
-96 -56 -80
-160 -400 1288
Your Numbers
Step 2. Configure Operating Expenses Health insurance Office supplies (planner, pens, filing folders, printer, computer, thank you cards, etc.) Internet/phone lines Professional advancement (webinars, online classes, books, memberships, meetings, trainings) Website domain & hosting fees Marketing materials (business cards, brochures, advertisingonline & offline) Travel expenses (for meetings, trips) Postage Software/hardware Auto expenses (If you travel to meet clients, note mileage, repairs, etc.) Other Other Percentage to reinvest in your biz (Recommend 5% of your total operating expenses above) Total Expenses (add all columns in Section 2 above)
$0 $600
$1,000 $500
$200 $1,000
$300 $250 $1200 $0
$0 $0 $253
$5303
Step 3. Total Revenue Required (Desired income + Total Expenses. 50,000 + 5303 = 55303)
$55,303
Step 4. Divide by billable hours (Final number from Section 1 above) equals hourly rate. (55,303 / 1288 = $42.94)
$42.94
Next: Create Package Rates When creating your packages, estimate how many hours you need to add into each package. (Ex: Package 1 will take 10 hours. Based on sample numbers: $42.94 x 10 hours = $429.40. You can round up to a $500 package.) Things to factor in when calculating hours for your packages:
Research involved on your part Communication with client—phone calls and emails How long it will take you to do each task involved in the project If you haven’t done a particular task before, double the amount of time you think it will take.
Alicia Jay Owner, New VA Advice [email protected] | http://www.newvaadvice.com/ | Skype: AliciaJay13 | Helping new & would-be Virtual Assistants
Item & Explanation
Sample Numbers
Desired annual income
$50,000
Step 1. Configure Billable Hours & Subtract NonBillable Hours Number of hours you want to work (Hours per week x 52 weeks in a year. Ex: 8 hours per day x 5 days = 40 x 52 = 2080 hours) Sick days (12 days per year, 8 hours per day. 12 x 8 = 96) Holidays off (7 days per year, 8 hours per day. 7 x 8 = 56 Vacation days off (10 days per year, 8 hours per day. 10 x 8 = 80) Your biz admin work (20 days = 160 hours) Time for marketing your biz (50 days = 400 hours) Total number of billable hours (add up columns above and subtract from initial hours available. 2080 – 792 = 1288)
2080
-96 -56 -80
-160 -400 1288
Your Numbers
Step 2. Configure Operating Expenses Health insurance Office supplies (planner, pens, filing folders, printer, computer, thank you cards, etc.) Internet/phone lines Professional advancement (webinars, online classes, books, memberships, meetings, trainings) Website domain & hosting fees Marketing materials (business cards, brochures, advertisingonline & offline) Travel expenses (for meetings, trips) Postage Software/hardware Auto expenses (If you travel to meet clients, note mileage, repairs, etc.) Other Other Percentage to reinvest in your biz (Recommend 5% of your total operating expenses above) Total Expenses (add all columns in Section 2 above)
$0 $600
$1,000 $500
$200 $1,000
$300 $250 $1200 $0
$0 $0 $253
$5303
Step 3. Total Revenue Required (Desired income + Total Expenses. 50,000 + 5303 = 55303)
$55,303
Step 4. Divide by billable hours (Final number from Section 1 above) equals hourly rate. (55,303 / 1288 = $42.94)
$42.94
Next: Create Package Rates When creating your packages, estimate how many hours you need to add into each package. (Ex: Package 1 will take 10 hours. Based on sample numbers: $42.94 x 10 hours = $429.40. You can round up to a $500 package.) Things to factor in when calculating hours for your packages:
Research involved on your part Communication with client—phone calls and emails How long it will take you to do each task involved in the project If you haven’t done a particular task before, double the amount of time you think it will take.
Alicia Jay Owner, New VA Advice [email protected] | http://www.newvaadvice.com/ | Skype: AliciaJay13 | Helping new & would-be Virtual Assistants
