Cost-effective calculation for designers

The calculation of your own office costs is a fundamental skill for self-employed web designers and graphic designers. It’s not just about covering costs, but also about setting realistic prices for your services. In this guide, you will learn how to determine your office costs to ensure that you are working profitably.

Key Insights

The total amount of your office costs consists of personnel costs, material costs, and calculated risks. You should calculate your hourly rate so that it covers these costs and secures you a reasonable income.

Step-by-Step Guide

Step 1: Recording Your Office Costs

First, you need to compile all the office costs you incur over the course of a year. This includes your desired salary as well as additional costs such as rent, software subscriptions, and equipment. When you add all these expenses together, you will get a preliminary total amount.

Step 2: Calculating the Calculated Risk

An important factor that you should not neglect is the calculated risk. This typically ranges from 4 to 6% of your total amount. In our example, we assume 5%. Calculate this percentage and add it to your previous total amount to get the final office cost total.

Step 3: Total Personnel Costs

In addition to your office costs, you also need to consider your personnel costs. These consist of your desired salary as well as any additional expenses associated with your activity. Add these two amounts together to calculate the total needed to cover your living expenses.

Step 4: Calculating Monthly Work Hours

Now it’s time to calculate your work hours. Assume that you work about 21.5 days a month and are active for 8 hours each day. Multiply these values to determine the monthly number of work hours.

Step 5: Calculating Annual Work Hours

To convert your monthly work hours into annual figures, multiply the monthly hours by 12. This gives you the total number of work hours available in a year to manage your projects.

Step 6: Calculating Hourly Rate

Now comes the crucial part: determining your hourly rate. Divide the total amount of your office costs by the annual work hours. The result is the hourly rate you would need to cover your costs and secure yourself an adequate monthly income of, for example, €2,500.

Step 7: Reviewing the Hourly Rate Calculation

Relate your new calculation to your desired income. Check if the calculated hourly rate is realistic compared to what you originally had in mind. In our examples, we found that the hourly rate of €40 is significantly higher than the originally thought €14.50.

Step 8: Adjusting the Calculation

If the calculated hourly rate does not align with your expectations, it is necessary to revise your calculation. Consider where you might be able to save costs or whether you need to adjust your hourly rate to achieve your desired income.

Summary – How to Effectively Calculate Your Office Costs as a Web and Graphic Designer

To effectively calculate your office costs, you need to capture all relevant expenses and set them in relation to your work hours. The figures obtained will help you create realistic and profitable offers.