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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 Holidays. Minimum is 24 days as of 2007/10/01, but that includes 8 days bank holidays: www.dti
8 Bank holidays (see 'Holidays')
5 Sick (average UK worker's days off)
24 General admin (2 days a month)
36 Marketing and business development (3 days a month)
B 93 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 800.00 Yearly running costs

E 4.76 Daily overhead = D/C

Labour rate

F 5000.00 Target salary (drawings) before tax

G 29.76 Daily labour rate (=target salary/billable days =F/C)

H 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 0.2 Profit margin

J 6.90 Daily profit = (overhead+labour [=E+G]) x profit margin

Billing rate

K 41.43 Daily billable rate = overhead+labour+profit [=E+G+J])

L 5.52 Hourly billable rate = daily / 7.5

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Document updated: 2007/10/12

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8 days bank holidays: www.dti.gov.uk/employment/employment-legislation/employment-guidance/page28979.html#paid_annual

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28979.html#paid_annual

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