The Chip MacGregor Equation

Written By: Timothy Fish Published: 10/3/2007

Literary agent Chip MacGregor has a simple formula that he uses when authors ask him about what it takes to be able to write as a fulltime job. He explains it on his blog at:

Using the simple form below, you can apply his formula to your own work. Keep in mind that you may have additional expenses, such as health insurance, if you quit your day job to spend your days writing.

The MacGregor Equation

How much much money would you like to make in one year?

Real Job Salary: Dollars per Year

How much money will you receive from writing contracts and/or royalty advances in the next 24 months?

Contracts: Dollars (24 months)

How many books do you have that have earned more than their advances?

Number Earned Out: Books

How much can you reasonably expect to receive this year from royalty payments other than advances.

Annual Royalties: Dollars

Annual Salary (No Health Care): Dollars
Annual Salary (With Health Care): Dollars

NOTE: This tool is intended only as a guide and should not be taken as financial advice.