How to Calculate Residual Income

Freelance writing is a very creative and exciting career. If you are into freelance writing, then chances are you are looking into ways to form residual income. There are ways for you to calculate exactly how much residual income you are earning on a monthly basis. There are also ways you can estimate the total amount of your income earned from freelance writing. Here is how you can calculate your residual income and project how much money you will earn based on the numbers you currently are using. Read on.

Procedure:

Things You’ll Need:

• Number of articles you have completed

Step 1

You will need to use the Excel program to calculate your residual income. If you don’t have Excel, find a comparable spreadsheet program and use it. Open the Excel program. We are creating a New Spreadsheet.

Step 2

Across the spreadsheet input the actual number of articles you have completed. Also input a value for the earnings you make every day. For each day document how many total articles you submitted on each day you earned money.

Step 3

Using this formula, you should get your results by dividing the total earnings by total numbers of articles you completed daily. This is your dollar per day ratio.

Step 4

For example, if you have 1 article completed on day 1 and you earned .50, then you had 2 articles completed on day two and it made you \$1.00, then you had 3 articles up on the third day and it brought in \$1.50, you should add your total earning (which is 3) by your total number of articles completed each day (which is 6). This will give you a ratio of .50 per article each day.

Step 5

You need to extrapolate your earnings. If, you plan to write one article every day at the end of the year you would have made \$182.50 from completing that one article a day standard.

Step 6

This number is indicated of the current rate of work. The number in the step above means that you don’t complete more work than what is stipulated. If you don’t put in more work your numbers will remain the same. More work equals more income.

Step 7

Now, use your spreadsheet to ‘click and drag’ your daily income to expand the present rate. You will see that the income is halved. This is due to the fact that the work is written at a regular pace. If you plan to write inconsistently, the spreadsheet will populate numbers that are not ½ of the previous total. This is why it’s so advantageous.

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About the Author: Marie Mayle is a contributor to the MegaHowTo team, writer, and entrepreneur based in California USA. She holds a degree in Business Administration. She loves to write about business and finance issues and how to tackle them.