The Daily Average Rate (TJM) is a crucial piece of information for any independent professional looking to sell their services at a fair value. Calculating this rate involves finding the balance between market competitiveness and personal profitability. But how can you determine this famous TJM in a way that is both realistic and advantageous?
Identify Fixed and Variable Costs
Before diving into calculations, it is imperative to clearly understand what your fixed and variable costs are. These costs represent the financial burdens you bear, regardless of your workload.
A découvrir également : How to Choose the Right Espresso Machine?
- Fixed costs include rent, insurance, software and hardware subscriptions, as well as social charges.
- Variable costs, on the other hand, fluctuate with your activity. They encompass travel expenses, office supplies, and subcontracting costs.
Precisely determine these costs to have a clear view of your monthly and annual expenses. This crucial step allows you to establish a solid foundation for calculating your TJM.
Evaluate the Number of Billable Days
It is not enough to consider the number of days worked to define your TJM. It is essential to distinguish between billable days and non-billable days.
A découvrir également : How to choose an inflatable kayak?
To do this, break down your working year considering the following elements:
- Holidays and public holidays: Deduct paid vacation days and public holidays, as they are generally not billable.
- Non-billable time: Include days spent on prospecting, training, and administrative tasks.
- Billable days: Calculate the days actually worked and billed to your clients.
This will give you an accurate estimate of the number of days you can bill in a year.
Set a Target Salary
Determining your TJM also involves setting a target annual salary. This is the amount you wish to earn to cover your needs and financial aspirations.
To set this salary:
- Evaluate your personal needs: Take into account your current expenses, social charges, taxes, and savings plans.
- Include a safety margin: Allow for a margin for unforeseen events and periods of low activity.
The target salary thus determined will serve as a reference for calculating your TJM.
Apply the Calculation Formula
Once you have identified your costs, evaluated your billable days, and set a target salary, you can proceed to calculate your TJM. The basic formula is as follows:
TJM = (Annual fixed costs + Annual variable costs + Annual target salary) / Annual billable days
For example, if your annual fixed costs amount to €20,000, your annual variable costs to €10,000, and your target salary to €50,000, with 200 billable days per year:
TJM = (20,000 + 10,000 + 50,000) / 200 = €400
This formula allows you to obtain a TJM that covers your financial needs while remaining competitive in the market.
It is important to note that this calculation can be refined using tools like a salary portage simulation to adjust and verify the viability of your TJM in different scenarios.
Calculating an average TJM requires a rigorous analysis of your costs, a realistic estimate of your billable days, and a clear setting of your financial goals. By following these steps, you can establish a TJM that reflects your value in the market and ensures your profitability. Adopt this methodology for a calm and effective financial management of your independent activity.