A rough method of working out your day rate

**Emperor Dalek** · 4 July 2006, 10:08

If it's enough for you to lead a nice lifestyle, not have to worry whether you can go to that restaurant or go on this holiday, and bank some surplus for the future, then it's enough. That's my rule of thumb for calculating my day rate.

Obviously more would be nicer, but I'm not greedy.

**malvolio** · 4 July 2006, 10:23

Using that formula, 50K pa becomes £498 a day, so stick to the old "Salary = (dayrate * 100)" equation then...

**Francko** · 4 July 2006, 10:32

Originally posted by malvolio

Using that formula, 50K pa becomes £498 a day, so stick to the old "Salary = (dayrate * 100)" equation then...

Not really... (50.000/230 + 5.000{benefits}x0.5/230) * 1.5 = (217.4+ 10.8) * 1.5 = 228.2 {actual equivalent monetary rate } * 1.5 = 342.3 a day. So 340 or 50k permie salary +benefits. Seems quite right to me.

**malvolio** · 4 July 2006, 10:44

Huh? (50,000 / 230) * 1.5 *1.5 = 489.

Anyway, you're a contractor. Take the highest answer.

**Francko** · 4 July 2006, 10:53

Originally posted by malvolio

Huh? (50,000 / 230) * 1.5 *1.5 = 489.

Anyway, you're a contractor. Take the highest answer.

No, no, no 1.5 twice... only one.

**ratewhore** · 4 July 2006, 10:56

erm, as a contractor on a day rate, why would I want to know this information? Is it for permies who aspire to be contractors but in the end find reasons not to?

**Francko** · 4 July 2006, 10:58

Originally posted by ratewhore

erm, as a contractor on a day rate, why would I want to know this information? Is it for permies who aspire to be contractors but in the end find reasons not to?

If they offer you a rate of 40 pounds an hour and a permie job of 100k a year, would you still go contracting? I think it is quite reasonable to take as a starting point your equivalent permie salary.

p.s. the real contractor is the one who doesn't believe in anything and he's also ready to sell himself as a permie should the daily rate be more.

**Troll** · 4 July 2006, 11:01

I tend to use the trusted method of Rolex watches @week /5

HTH

**ratewhore** · 4 July 2006, 11:08

Originally posted by Francko

If they offer you a rate of 40 pounds an hour and a permie job of 100k a year, would you still go contracting? I think it is quite reasonable to take as a starting point your equivalent permie salary.

p.s. the real contractor is the one who doesn't believe in anything and he's also ready to sell himself as a permie should the daily rate be more.

Total dogsh1te. A £100K permie position with 20 days holiday a year, tugging your forelock to a line manager on a daily basis while worrying about your annual appraisal? I don't think so.

The real contractor is the one who sees more advantages to the contractor lifestyle than the cash...

A rough method of working out your day rate