FreeLists / webproducers / [webproducers] Re: Gross Margin

["Surla, Stacy" <SSurla@xxxxxxxxxxxx>]

I went about this by calculating what I needed to charge in order to earn
what I needed to make, on a yearly basis.

Factoring in overhead (an office room in my house, payments on my equipment,
transportation costs, supplies), general & administrative expense (health
insurance, fica, self-employment tax, some sick days, some vacation days,
and an optimistic estimate of 24 billable hours/16 marketing and
administrative hours per week), to make $60,000 per year I had to charge
between $55 and $75 per hour.  That works out to multiplying your desired
salary by between 2 and 2.5 and dividing by 2080 hours.  This was an
accurate calculation for me.

If you have other expenses on a project, of course you need to factor those
in.  

~Stacy


On Mon, 10 Sep 2001, Carrie Giddings wrote:

>
>
> Question:  What is the best way to figure out gross margin on a project?
>
> Thanks!
> Carrie
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