How to determine your rate per hour?

Many developers are getting lost when they are setting their hourly development rates. What is a reasonable rate for my work? How much should I get paid to feel myself comfortable?

Well, of course there are average market prices and other things to consider, but here is a basic calculation made from a "how much do I want to get paid" view: Let's say, you want to earn $70K per year. There are 365 days in a year, lets eliminate weekends (we are going to work five days per week). That's 260 days left. Allow yourself holidays (trip to bahamas), let's take 20 days off. It is impossible to work with 100% workload, so 33% of time will go for accounting, client searching, info gathering and other business duties. So we've got 158 super - productive days in a year. Let's calculate our daily earnings: $70000 / 158 = $443 per day. So, our desired daily rate is: $443 / 8 = $55. Ok, but this number is not dogmatic, you need to investigate your market and tune your price accordingly. Hope this one was useful for you.

If you have some suggestions on the topic, please comment.