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1244_g3681-ps__square - 1x1 - skype - vg - 200pix_pragsmall
20 Jan 2013, 21:19
Paul Pladijs (24 posts)


On page 12 of your book (beta 2) I see that the hour rates are 83 $/hour for a Senior tech lead and 59 $/hour for a mid developer. What does this cost contain exactly? Is that the full rate that is paid if you would hire such person in the US? Does this person get this amount or only pat of it?

The same question applies also the numbers found on page 24 (and more), such as 14,500 $/month for e.g. a mid Lead/development.

Many thanks in advance, Paul.

UPDATE: Is this question appropriate? I’m getting no answer :-(

25 Mar 2013, 23:04
nick krym (2 posts)


My apologies for delayed (well, very delayed) response.

These figures are there for reference purposes only, as the salary structure varies dramatically based on the location (e.g. the West Coast vs. East, specific cities, etc.), type of the company (e.g. startup vs. established company, etc.), role, seniority, technology, and many other factors. To roughly calculate an estimated hourly rate you can use a very simple formula – annual salary / 2,000. That assumes 8 hour work day which is relatively common with exception of very aggressive start ups. If you prefer more precise estimates you will need to take in consideration PTO and paid holidays as well as benefit ratio which is usually between 18% and 24%.

To get a decent estimate of annual salary you can use sites like

Once again, my apologies, and please do not hesitate to contact me directly nkrym at yahoo if I could be of any help.



1244_g3681-ps__square - 1x1 - skype - vg - 200pix_pragsmall
02 Apr 2013, 17:10
Paul Pladijs (24 posts)

Hi Nick,

If I understand it well, these figures are salaries. In other words: what the people get before paying taxes.

The real cost will probably be (much) higher because you need to spend money on offices, furniture, IT infrastructure and so on. Is that correct?

Thanks, Paul.

09 Apr 2013, 20:45
nick krym (2 posts)

Yes, you are correct. The real cost of employee is difficult to estimate and could be much higher than salary + benefits alone. Nowadays it ranges dramatically depending on location, company style, etc. Rent, utilities, network, etc. At the same time, these costs are considered “general overhead” and are not commonly included in the cost analysis. Thanks, Nick

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