How to Set Your Rates

Annual Income Goal Example Your Calculation

1) Amount you want/need to earn, after expenses, in a year:

$50,000 _______________

2) Business expenses: As an estimate use 30% for expense figure. Multiply above amount by .30

$15,000 _______________

3) Gross revenue (income before expenses): Add line number 1 to line number 2

$65,000 _______________

4) Weekly revenue: Line number 3 divided by 52 weeks
$1,250 ________________

5) Rate charged per child: Divide line number 4 by number of children desired. (For example 7 children)

$178 _________________

Note: This calculation does not take into account different rates for different aged children or part-time rates. You can set different rates for different ages:

6) Differing Rates: (For example: 1 infant at $250 a week, 1 toddler at $200 a week, 3 full-time preschoolers at $180 a week, 2 part-time preschoolers at $130 a week. Total: $1,250 a week)

$1,250 _______________

If you are just starting out, you can expect to work 65 hours a week. (11 hours a day, 5 days a week caring for children and another 10 hours a week on cleaning, paperwork, and meal preparation.)

If you earned $1,250 per week, you would be earning $19.23 per hour.

Tom Copeland -­‐ www.tomcopelandblog.com