I'm not a contractor, but wouldn't dividing by 2000 be a bit excessive? That would be 40 hours x 50 weeks, and everything I've read about contracting implies that you cannot bank on having constant work like that.
I've been contracting since 1997 and I haven't had a single day without employment. Except when I've chosen to have a holiday.
My secret has been to do such a good job that the client finds me indispensable and then leave on my terms, always with another gig lined up. Sometimes I've had to stay with clients for many months when I'd rather move on. Once I was working for a client that had a smell like they were going broke so I had to ruthlessly extract myself before my contract was due to expire, but that proved to be a good decision as a few months later nobody was being paid and were suddenly out of work.
I worked in a permanent role for 6 years before contracting, and I doubt it would be a good idea to do it with no experience. My first contract was acquired through an agency, and probably 50% of my work is through an agency, the rest is word of mouth and doing more work for former clients.
I usually divide by 1,000 when I'm working out those numbers, to account for time spent finding clients, lulls, etc. Sometimes it's really nice to just take the afternoon off, and it's really nice when that's already factored into your rate.
I bill an average of 1816 hours a year. 10 holidays, 3 weeks of vacation, 3 sick days and a week a year finding new gigs. That's been the case for the last 12 years.
