How to Calculate Yearly Revenue | MyCareSpace
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How to Calculate How Much you Earn in a Year

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What is your annual income?

The example provided is for service providers who charge an hourly rate:

Your annual income is an estimate of how much you think you will earn in a year. This is used by the insurers to measure how much risk they are taking on and is common practice in the insurance industry.

You will need to think about:

  1. how many hours you will work per week,
  2. how many weeks of the year you plan to work and
  3. how much you plan to charge your clients (your hourly rate).

An easy way to estimate how much income you expect to make per year is:

  • Estimate the number of hours you plan to work a week
  • Estimate the hourly hate you plan to charge your clients
  • Multiply the number of hours by the hourly rate to get your estimated weekly earnings

For example:
Assuming an hourly rate of $45/hour and that you work 25 hours a week, this would equate to a weekly income of:
25 hours x $45 = $1,125 per week income

To convert your weekly income to your annual income, multiply your weekly income by the number of weeks you plan to work.
$1,125 x 50 weeks = $56,250 annual income

Remember this is an estimate, if anything changes you can always call your insurers and notify them of your change in estimated income.

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