I'm not sure how you're doing your math, but if it's $15/hr as a contract, and not as a salary, then it's worth about $15,000 a year, not $30,000 a year.

From your hourly rate, you have to subtract all those things that an employee gets paid for them, such as office space, materials, training, downtime (sick, vacation), healthcare benefits, retirement benefits, marketing costs, administrative costs, and the booking ratio (time spent billing vs time spent on overhead or just no work).

I've been a contractor and a small business owner for almost 20 years. The formula is about right. $100/hr for billing is $100K a year, not $200K. Proven repeatedly by my direct personal experience.

-- Randal L. Schwartz, Perl hacker
Be sure to read my standard disclaimer if this is a reply.

In reply to Contractor vs Salary (was Re^3: How much is an web-based application worth?) by merlyn
in thread How much is an web-based application worth? by perleager

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