1. Your annual expenses
Enter yearly amounts. Divide any monthly bill by 12 first (×12). Leave at 0 what does not apply.
2. Your business
How you turn annual costs into per-day and per-booking figures.
3. Your numbers
Updates live as you type.
4. Where the money goes
Expense allocation by category, sorted largest first.
5. Benchmarks from published guides
Rules of thumb cited by industry pricing guides — sanity checks, not financial advice.
| Benchmark | Published guidance | Source |
|---|---|---|
| Cost of goods sold (COGS) | ≈ 25% of sales | PPA benchmark recommendations, via DIYPhotography “Complete Guide to Pricing Your Photography” |
| Overhead & general expenses | ≈ 35% of sales | PPA benchmark recommendations, via DIYPhotography “Complete Guide to Pricing Your Photography” |
| Marketing budget | 10–15% of projected annual revenue | Photography studio marketing budget guides |
| Profit margin target | 20–50%, depending on market & experience | Photography pricing guides |
How the math works
CODB per workday =
annual CODB ÷ selling days per yearCODB per booking =
annual CODB ÷ bookings per yearBreak-even price =
cost per booking ÷ (1 − profit margin)Required annual revenue =
annual CODB ÷ (1 − profit margin)
Example: $81,800 annual CODB ÷ 60 bookings = $1,363.33 per booking. With a 20% margin target: $1,363.33 ÷ 0.80 = $1,704.17 minimum average price.
Frequently asked questions
What is the cost of doing business (CODB) formula?
The basic formula is: annual CODB equals total yearly operating expenses — rent, wages, insurance, equipment, software, marketing, taxes, plus your own salary. Then CODB per workday equals annual CODB divided by selling days per year, and CODB per booking equals annual CODB divided by bookings per year. Your average price must sit above the per-booking figure, or the business loses money on every job.
How do I calculate the cost of doing business for a photography business?
List every annual expense: camera bodies and lenses (or a yearly depreciation figure), editing software, studio rent, liability and gear insurance, website and marketing, travel, accounting, and education. Add the salary you need to live on — this is the step most photographers skip. Divide the total by the number of shoots you realistically book per year. The result is the true cost of each session before profit.
What is a good CODB per day?
There is no universal good number — it depends on your costs and how many days you sell. A solo photographer with $50,000 in annual costs and 200 selling days has a CODB of $250 per day; the same costs spread over 100 selling days double it to $500 per day. Watch the trend: a per-day figure falling as you book more is healthy, while one rising because costs grew faster than bookings is a warning sign.
How many selling days should I use in the calculation?
Use realistic selling days, not 365. Subtract weekends you do not work, holidays, sick days, and admin or editing days when you cannot shoot. Most full-time freelancers land between 200 and 250 selling days per year. Being optimistic here is the most common CODB mistake — it shrinks your per-day cost on paper and leads directly to underpricing.
Should my salary be included in the cost of doing business?
Yes. Professional pricing guides treat the owner's salary as a cost, not as profit. If your prices cover everything except your own pay, the business is subsidizing clients with your unpaid labor. Enter the annual income you need — your target draw or salary — as the first line item in the calculator.
How do I calculate my break-even price per booking?
Divide annual CODB by your expected bookings to get cost per booking, then add your profit margin with this formula: break-even price equals cost per booking divided by (1 minus profit margin). Example: $1,363 cost per booking with a 20% margin target gives $1,363 / 0.80 = $1,704 minimum average price. Charge less than this and you work below cost once profit is accounted for.
What expenses count toward the cost of doing business?
Everything required to keep the doors open whether or not you book a client: rent, salaries, insurance, equipment (purchase, lease, or depreciation), software subscriptions, marketing, taxes and licenses, utilities, vehicle and travel, accounting and legal fees, training, and miscellaneous costs. Exclude per-job variable costs like prints or a second shooter hired for one wedding — those belong in per-project pricing, not in CODB.
What is the difference between CODB and profit?
CODB is what it costs to run the business for a year; profit is what remains after costs are paid from revenue. Covering your CODB only means breaking even — you still need a margin on top for savings, slow months, and growth. That is why this calculator adds a target profit margin to the break-even price instead of stopping at cost.
What is the difference between CODB and overhead?
Overhead usually means indirect business costs excluding your salary and direct labor. CODB is broader: overhead plus your salary and any direct labor — the full annual cost of staying in business. For a solo freelancer the two figures are close; once you hire employees, the gap between them matters for pricing.
What percentage of revenue should a photographer spend on marketing?
Published photography business guides commonly recommend budgeting 10 to 15 percent of projected annual revenue for marketing. A $100,000 revenue target implies a $10,000 to $15,000 marketing budget. Treat this as a planning rule of thumb and adjust to what your booking pipeline actually needs.
What is a healthy profit margin for a photographer or freelancer?
Photography pricing guides commonly cite 20 to 50 percent as a healthy target margin, depending on market and experience. Below 20 percent leaves little cushion for slow seasons and equipment replacement; above 50 percent is achievable in premium niches but harder to sustain against competition.
How often should I recalculate my cost of doing business?
At least once a year, and immediately after any big change: signing a studio lease, hiring help, raising your salary goal, or a major equipment purchase. Many studios redo the math quarterly because bookings shift with the season. An outdated CODB silently underprices every quote you send.
Free tool by NRTechStudio