Converting Full Time Pay to Hourly Contract Rate

hueniverse

Multiple people asked me this week how much they should charge for an hourly development engagement, trying to figure out what’s fair. They all know their full time salary range but didn’t know how to translate that into self-employed hourly rate. This post is a quick explanation of the formulas I use. This is obviously not an industry standard or what your next employer (or employee) is going to use but you might find it a useful reference point. This is limited to US based employment. Needless to say, these formulas ignore the many employer tax differences of employing W-2 vs 1099 employees. They are also ignoring the most important factor which is the human element. We are talking about people hiring other people where unique skill sets, personalities, and economic realities can often mean more.

There are two types of hourly employees, those you can easily replace with full…

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