top of page
how to determine hourly wage as zzper.jpg

Personal Income
Extra Details

I have provided the automatic calculators for your convenience, but I know that some of you will prefer to understand exactly what math is involved and why. So I've included that here.

Note: Throughout this guide I have used Euro (€) currency to help make the calculations clearer, but you can swap this to any decimal currency ($, £) and the calculations will be the same.

Example: Based on Option 1 & 2.

From our research, we determined our (minimum) hourly wage to be €13.27

In the Working Hours segment if this guide we already determined that we can work 40 hours per week.

(31 billable and 9 non-billable hours)

In the Fixed Cost segment we already decided that we will work 44 weeks each year.

image.png

So we need to charge €20.24 per hour during each billable hour to cover our own income.  

Example: Based on Option 3.

With this option, we don't need to concern ourselves with the non-billable hours, as we will divide the amount we need to earn each month across the billable hours. 

 

We still need to take vacation and sick days into account which is why we use the number of weeks worked.

image.png

So we need to charge €21.99 per hour during each billable hour to cover our own income.  

bottom of page