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How To

How to Calculate Residual Income

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By Jared86
User-Submitted Article
(3 Ratings)
Residual Income Money
Residual Income Money
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Are you writing articles online? Need help estimating your residual income? This guide will project how much money you will make.

Difficulty: Moderately Easy
Instructions

Things You'll Need:

  • Spreadsheet software
  1. Step 1

    Open "Excel" or some other spreadsheet program. Input the number of articles you have written, the earnings each day, and the total articles you had on each day that you earned.

  2. Step 2

    Use a formula to divide the total earnings by the the total number of articles you had on each day that you earned to get your dollar per article per day ratio.

  3. Step 3

    An example of this: If you had 1 article up the 1st day, and it earned you fifty cents, you had two articles up the second day, and they earned you a dollar, and you had three articles up the third day, and they earned you a dollar and fifty cents, you would add up your total earnings (3), and divide it by your total articles up on each day (6) and get a ratio of fifty cents per article per day.

  4. Step 4

    Now, extrapolate out your earnings. If, as per the example above, you plan to write one article every single day, at the end of the year you would be making $182.50 from your articles per day.

  5. Step 5

    However, this does NOT mean you would make 66 thousand dollars a year for that year's worth of work! That number would be what you would make if, at the end of the year, you did no more writing and earned 182.5 consistently for a whole new year.

  6. Step 6

    This is where the spreadsheet comes in. If you "click and drag" out your earnings per day to expand at the present rate, you'd find yourself getting only half of that money during the year, about 33 thousand. This reason why this is so uniform is because you are writing at a very regular pace. If you plan to write irregularly, the spreadsheet will give you numbers that are not exactly 1/2 of the previous total. So it can be handy.

Tips & Warnings
  • Realize that these are only estimates and nobody knows for sure how much the internet is going to be used or how much online ad revenue is really worth a year from now.

Comments  

kaytay said

Flag This Comment

on 2/10/2009 Interesting! 5*

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