# Money and Stuff

:::info
In general something between `80 - 120 Euro`
:::

An overview of how I caluclate Things.

Take a reliable base value and caluclate downwards or upwards.
Depends on the view.

Data choice is union traffis form the german [ITK](https://en.wikipedia.org/wiki/Information_and_communications_technology) Union.
The Dataset is publicly available.

[Click on your own](https://itk-entgeltanalyse.igmetall.de/job/software-engineering/software-ingenieur-in-iv/)

:::spoiler

The most sources in the Internet are completly out of reality or relly on [Questionable Datasets](https://web3.career/web3-salaries/rust-developer).

Union Tarifs are a compromise between Employee and Employer.
Their Incentives are clear to get the numbers right.
Stepstone/LinkedIn/... have diffrent incetives, which is not bad, but not optimal either.

Based on this value I caluclate Price/Salary from an internal view and and extrenal view.

*I added Earnings for a sell driven Buisness Model to frame this document nicely.*
*It sums up my general thinking.*

:::

## Cost
:::info

`Hourly rate(intern)` = `63.78 Euro / hour`
`Hourly rate(extern)` = `156.5 Euro / hour`

> Given Values:
> `Brutto Employe` = `100 000 Euro`
> `Tax & Insurance (Arbeitgeberanteil / Employer part)`= `25% Brutto Employee`
> `Total Hours` = `1960 hours`
> `Total available working hours` = `1600`
> `Effective working rate` = `0.5`

:::

:::spoiler

|Step|Description|
|:-|:-|
|1|Define base value of Brutto Employee|
|2|Caluclate Brutto Company|
|3|Calculate Total available hours|
|4|Guess effective working rate|
|5|Caluclate Effective working hours|
|6|Calculate hourly rate (intern)|
|7|Calculate hourly rate (extern)|

### Cost Calucation

1. Define base value of Brutto Employee
- `Brutto Employee` = `Netto` + `Tax & Insurance (Arbeitnehmeranteil / Employee part)`
- `Brutto Emoloyee` = [Union Tarif](https://itk-entgeltanalyse.igmetall.de/job/software-engineering/software-ingenieur-in-iv/) = `100 000 Euro`
2. Caluclate Brutto Company
- `Brutto Company` = `Brutto Employe + Tax & Insurance (Arbeitgeberanteil / Employer part)`
- `Brutto Company` = `100 000 Euro` + `25% of Brutto Employee`
- `Brutto Company` = `125 000 Euro`
3. Calculate Total available hours
- `Total available working hours` = `Total hours` - `NonAvailable(Holiday, StateHolidays, Illness, ...)`
- `Total available working hours` = `12 months * 4 weeks * 5 days * 8 hours` - `2 months * 4 weeks * 5 days * 8 hours`
- `Total available working hours` = `1 600 hours`
4. Guess effective working rate
- `Effective working rate` = `Total available working hours / Effective Working hours`
- Guess: `0.25 = okish`, `0.5 = good`, `0.75 = beast`
- `Effective working rate` = `0.5`
5. Caluclate Effective working hours
- `Effective working hours` = `Total avaialbe working hours` * `Effective working rate`
- `Effective working hours` = `1 600 hours` * `0.5`
- `Effective working hours` = `800 hours`
6. Calculate hourly rate (intern)
- `Internal Bill / hour` = `Brutto Company` / `Total hours`
- `Internal Bill / hour` = `125 000` / `1 960`
- `Internal Bill / hour` = `63.78 Euro / hour`
- `Internal Bill / hour` = `Hourly rate(intern)`
- `Hourly rate(intern)` = `63.78 Euro / hour`
7. Calculate hourly rate (extern)
- `External Bill` = `Effective working hours` * `X Euro / hour`
- `Brutto Company` = `External Bill`
- `Brutto Company` = `Effective working hours` * `X Euro / hour`
- `125 000 Euro` = `800 hours` * `X Euro / hour` |:`800 hours`
- `X Euro` = `156.5 Euro / hour` |:`1 hour`
- `X Euro / hour` = `156.5 Euro`
- `Hourly rate(extern)` = `X Euro / hour` = `156.5 Euro`

:::

## Earnings

:::info

16 000 Proudcts have to be sold over a year to provide for a minimal workforce of 5 people to hit Break Even.

> Given Values:
> `Product Prize` = `50Euro`,
> `Cost Per Product` = `20Euro`
> `Production Cost` = `Salaries` + `Extra`
> `Sold` = `Cost` - `Income per Product` * `Sold`

:::

:::spoiler

### Earnings

This section is not necessary.
It display my general thinking

### Overview

|Step|Description|
|:-|:-|
|1|Define Earnings|
|2|Define Income per Product|
|3|Guess Cost per Product|
|4|Set Price per Product|
|5|Calcuate Income per Product|
|6|Define production Cost|
|7|Guess extra rate|
|7|Guess necessary workforce|
|8|Guess average paying salary|
|9|Calcuate Production Costs|
|10|Define Earnings per product|
|11|Calucate Break Even|

### Earnings / Breakeven Calucation
1. Define Earnings
- `Earnings` = `Cost` - `Income`
2. Define Income per Product
- `Income per Product` = `Product Price` - `Cost / Productcount`
3. Guess Cost per Product
- `Cost per Product` = `20 Euro per Product`
4. Set Price per Product
- `Price per Product` = `50 Euro per Product`
5. Calcuate Income per Product
- `Income per Product` = `Price per Product` - `Cost per Product`
- `Income per Product` = `30 Euro per Product`
6. Define production Cost
- `Production Cost` = `Salaries` + `Extra`
7. Guess Extra rate
- `Extra` = `Extrarate` * `Salaries`
- `Extra` = `0.2` * `Salaries`
8. Guess Minimal Necessary workforce
- `Minimal Necessary Workforce` = `1 UI/UX Expert` + `1 Frontend` + `1 Backend` + `1 Smart Contract` + `1 3D Artist`
9. Guess average paying salary
- `Average salary` = `80k Brutto Company per employee`
10. Calcuate minimal production Costs
- `Production Cost` = `Salaries` + `Extra`
- `Production Cost` = `5 * 80 000` + `0.2 * Salaries`
- `Production Cost` = `480 000 Euro`
11. Define Earnings per product
- `Earnings` = `Cost` - `Income per Product` * `Sold`
12. Calucate Break Even
- `Earnings` = `0 Euro`
- `0` = `Cost` - `Income per Product` * `Sold`
- `0` = `480 000 Euro` - `30 Euro per Product` * `Sold` |: `-480 000 Euro`
- `-480 000 Euro` = - `30 Euro per Product` * `Sold` |: `*(-1)/(30 Euro/Product)`
- `-480 000 Euro * (-1) / (30 Euro / Product)` = `Sold`
- `16 000` = `Sold`

**16 000 Proudcts have to be sold over a year to provide for a minimal workforce of 5 people to hit Break Even.**

:::