Cost of Doing Business (CODB): How Photographers Calculate True Profit

The Freelancer Revenue Trap

A photographer books 4 weddings in a month at ₦200,000 each.

They look at their bank account, see ₦800,000, and think: "I'm making great money!"

Three months later:

• Their main lens autofocus motor burns out (₦180,000 repair).
• Adobe Creative Cloud renewal hits.
• Studio generator fuel burned through ₦90,000.
• They owe taxes and insurance.
• Suddenly, their personal savings are empty.

Revenue is not profit. To survive and thrive as a photographer, you must know your Cost of Doing Business (CODB).

Step 1: Calculate Your Annual Fixed Overhead

Your fixed costs exist whether you shoot 50 weddings or 0 weddings this year:

• Equipment Depreciation & Insurance: Camera bodies last 3–4 years. Lenses, lights, memory cards. (Approx. ₦600,000/year).
• Software Subscriptions: Lightroom, Photoshop, website hosting, gallery platforms, accounting tools. (Approx. ₦250,000/year).
• Marketing & Advertising: Meta ads, portfolio site, business cards, networking events. (Approx. ₦300,000/year).
• Studio / Office Overhead: Electricity/fuel, internet data, studio rent. (Approx. ₦1,200,000/year).
• Total Fixed Overhead: ₦2,350,000 / year.

Step 2: Determine Your Desired Personal Salary & Taxes

You are not working for free. You must pay yourself a realistic living wage:

• Desired Take-Home Salary: ₦6,000,000 / year (₦500,000/month).
• Income Tax & Pension Reserve (15%): ₦900,000.
• Total Personal Requirement: ₦6,900,000 / year.

Total Business Requirement = Fixed Costs (₦2.35M) + Salary & Taxes (₦6.9M) = ₦9,250,000 per year.

Step 3: Calculate Your Real Billable Shoot Days

There are 365 days in a year. But you cannot shoot every day:

• Weekends/Rest: 104 days.
• Marketing, editing, culling, admin, client meetings: 180 days.
• Sickness / Vacation: 21 days.

Realistic billable shoot days for an active full-time photographer: 60 shoot days per year.

The Minimum Day Rate Formula

$$ \text{Minimum Day Rate} = \frac{\text{Total Annual Target}}{\text{Billable Shoot Days}} $$

$$ \text{Minimum Day Rate} = \frac{₦9,250,000}{60} = ₦154,166 \text{ per shoot day} $$

If your minimum day rate is approximately ₦155,000, taking a wedding or full-day shoot for ₦50,000 means you are subsidizing that client out of your own pocket.

Use this CODB benchmark whenever you create packages or respond to inquiries. You will quote with unshakable confidence knowing exactly what you need to survive and build wealth.