In my 20 plus years of consulting I have budgeted 1,800 hours per work year. The typical work year is considered to be 2080 but for consultants you have to consider vacation - 120 hours, sick time - 40 hours, training - 40 hours, holidays - 80. Regardless of my rate, This is how I compute my expected income for the year. I frequently work more hours due to overtime but I always take vacation as "She who must be obeyed" requires it.