Your cost of doing business (CODB) is the minimum you must earn each billable day just to cover costs, before any profit. It is widely used by photographers, designers and trades to set prices that are actually profitable.
How to use the Cost of Doing Business Calculator
- Annual overhead (rent, insurance, software, equipment)
- Your own salary
- Taxes and benefits
- Billable days per year
- Billable hours per day
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter your yearly fixed and overhead costs, your own salary, and the number of billable days and hours.
Tips
- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.
Common mistakes to avoid
- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.
Inputs explained
| Field | What to enter |
|---|---|
| Annual overhead (rent, insurance, software, equipment) | Amount in your currency |
| Your own salary | Amount in your currency |
| Taxes and benefits | Amount in your currency |
| Billable days per year | A number |
| Billable hours per day | A number |
What each result means
- Total annual cost = [Annual overhead (rent, insurance, software, equipment)] + [Your own salary] + [Taxes and benefits]
- Cost of doing business per day = [Total annual cost]÷[Billable days per year]
- Per billable hour = [Cost of doing business per day]÷[Billable hours per day]
Example values
How the main result changes when Annual overhead changes and everything else stays at the example values above:
| Annual overhead (rent, insurance, software, equipment) | Cost of doing business per day |
|---|---|
| 12,000 | 591.67 |
| 18,000 | 641.67 |
| 24,000 | 691.67 |
| 30,000 | 741.67 |
| 36,000 | 791.67 |
| 48,000 | 891.67 |
Formula
Cost of doing business per day = total annual costs ÷ billable daysPer hour = per day ÷ billable hours per dayWorked example
Inputs — Annual overhead (rent, insurance, software, equipment): $24,000; Your own salary: $50,000; Taxes and benefits: $9,000; Billable days per year: 120; Billable hours per day: 6.
Results — Total annual cost = $83,000.00; Cost of doing business per day = $691.67; Per billable hour = $115.28.
Frequently asked questions
What is cost of doing business?
The total cost of running your business divided by the days you actually bill.
Should my salary be included?
Yes – otherwise your prices will not pay you.
How many billable days are realistic?
For freelancers, often 100–180 days a year.
What formula does the Cost of Doing Business Calculator use?
Cost of doing business per day = total annual costs ÷ billable days.