Hi,
I've been watching job boards for Ruby related contracts lately and have noticed some low rates being offered with high expectations. It's happening frequently enough that I wanted to post my understanding of how to calculate an hourly rate. Setting reasonable standards of pay for the appropriate level of expertise is vital. There's a lot to say on the matter, so I've tried to be brief.
For some reason it's very easy for software developers to match their experience and knowledge to a full-time rate, but for contracting there is less awareness.