How Much Should I Charge?

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How much should I charge?

That’s a big question many new computer consultants face and it is a question that is tough to answer.

There are many factors involved.  What services are you offering? What is your competition charging?

Before you take all that into consideration, however, you first must figure out how much you NEED to charge to stay afloat as a business.

This is a good exercise to perform before you start your computer business, or even after you’ve been in business for a while.

I put together the calculator below to help you quickly figure out how much you SHOULD be charging, at a minimum, to sustain yourself and your business. Try it out and then make sure you charge what you’re worth!

The “How Much Should I Charge?” Calculator

• Desired Income (monthly)

  This is how much money you would like to come directly to you after all is said and done. This should be enough to pay your bills plus a little extra left over.

  Example: 3000
• Business Expenses? (monthly)

  This includes all of your monthly business related expenses including stuff like office supplies, advertising, gas, salary for employees, etc.

  Example: 900
• Benefits (monthly)

  Add up anything that your previous employer paid for you, like health insurance, dental, travel, or cost of living and put the total in this field. If you have not been previously employed, put 0.

  Example: 250
• Your Tax Rate (percent)

  Look up your estimated tax rate and put it in here.

  Example: 25 (for 25%)
• Average Time Per Customer (hours)

  How long does it take you to do the typical client job? Include travel time here if you don't charge extra for it.

  Example: 1.5 (for 1 1/2 hours)
• Customer Load (per week)

  How many customers do you take on in a typical week? Shoot low here so you know that you can still afford to survive during lean times.

  Example: 15
• How much you should charge (per hour)
  The below figure is the minimum amount you should charge per hour.

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