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The factor of 1000 assumes a 4 hr, 5 day week.

    50 * 5 * 4 * 120  = 120,000.00
That's what the clients will be giving you. Out of that comes insurance and self-employment tax and additional social security (in the USA, as an example).

If you are working backwards from a fixed salary you have to also add in the dollar value of additional taxes and insurance, plus whatever other benefits you might be getting.

$120K salary at a regular job > $120K in paid invoices from clients.

If you're a consultant or contractor or whatever, even if you work 8 hours a day they are not all billable hours. There's the tedious business work to look after (record keeping, business development, etc.)



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