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Based on www.stc.org/confproceed/2002/PDFs/STC49-00051.pdf Overwrite the demonstration data with realistic values for your business Blue=enter your numbers Yellow=calculated
Billable days calculation A 261 Weekdays 20 8 5 24 36 93
B
Holidays. Minimum is 24 days as of 2007/10/01, but that includes 8 days bank holidays: www.dti.gov.uk/e Bank holidays (see 'Holidays') Sick (average UK worker's days off) General admin (2 days a month) Marketing and business development (3 days a month) Non working days
C (billable days) = A -B =
168
Costs of running the business cost item 100.00 advertising / publicity 100.00 hardware and software 100.00 training 100.00 professional bodies / conferences 100.00 site visits 100.00 business insurances 100.00 pension/healthcare/ 100.00 phone & office costs D E 800.00 Yearly running costs 4.76 Daily overhead = D/C Labour rate F G H 5000.00 Target salary (drawings) before tax 29.76 Daily labour rate (=target salary/billable days =F/C) 16.00 Daily overhead as % of labour (=(E/F)*100 [not part of Juillet's formula])
Profit margin calculation Profit margin (www.freelanceuk.com/running_business/price_for_profit.shtml suggests 20%) I J 0.2 Profit margin 6.90 Daily profit = (overhead+labour [=E+G]) x profit margin Billing rate K L 41.43 Daily billable rate = overhead+labour+profit [=E+G+J]) 5.52 Hourly billable rate = daily / 7.5
Document updated: 2007/10/12
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cludes 8 days bank holidays: www.dti.gov.uk/employment/employment-legislation/employment-guidance/page28979.html#paid_annual
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e/page28979.html#paid_annual
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