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# day rate

How to calculate a dayrate

Lets assume I want to have the average income of an office employee (in germany thats ca. 40000 EUR gross - german wikipedia)

• So, we start with 40000 EUR per year (the comparable employee gross income)
• As I am a freelancer, I have to add the bits that an employer usually caries (germany: 32% - german wikipedia), so now we are at 52800 EUR
• To that I have to add cost for running my business (travel, laptop, phone, tax consultant etc.). Lets say 6000 EUR
• So, the yearly turnover would need to be 58800 EUR per year

Now, lets earn this  turnover:

• Assuming 2 months for holidays and sickness, this money needs to be earned in 10 months
• Within each month, paper work, client meetings, learning etc. must be done. So, I assume the amount of billable days amounts to 13 days per month.

Hence: 58800 EUR / 10 Months / 13 Days = 452 EUR per day.

Here a little table that shows the numbers for different comparable employee gross incomes (leftmost column) and the resulting day rate (rightmost column). Also check the linked spreadsheet if  you want to modify numbers.

employee gross income

cost per year

fixed cost

sum per year

working months

rev. per month

billable days per month

day rate

1.32 6000 10 13.00
10000 13200 19200 1920 147.69
15000 19800 25800 2580 198.46
20000 26400 32400 3240 249.23
25000 33000 39000 3900 300.00
30000 39600 45600 4560 350.77
35000 46200 52200 5220 401.54
40000 52800 58800 5880 452.31
45000 59400 65400 6540 503.08
50000 66000 72000 7200 553.85
55000 72600 78600 7860 604.62
60000 79200 85200 8520 655.38
65000 85800 91800 9180 706.15
70000 92400 98400 9840 756.92
75000 99000 105000 10500 807.69
80000 105600 111600 11160 858.46
85000 112200 118200 11820 909.23
90000 118800 124800 12480 960.00
95000 125400 131400 13140 1010.77
100000 132000 138000 13800 1061.54
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