hi, Andrea - This was a super helpful formula that a former agency CEO provided me when I was setting my rates:
• Take your highest salary (or goal salary) and add 20% to it to account for higher tax rate, no benefits, etc. (e.g., $100,000 --> $120,000)
• Now, calculate your rate backward using $120,000 as your pre-tax income goal
• Assume you will bill 1,000 - 1,200 hours a year if working full-time
• $120,000/1000 = $120/hour
• $120,000/1200 = $100/hour
• Your rate would need to be between $100-120/hour to meet your income goal (assuming you bill 1000-1200 hours)
I hope this is helpful!