How to Calculate Your Cost Per Session for Different Photography Projects
In professional photography, knowing your cost per session is one of the most important steps to building a profitable business. It’s not just about setting a fair rate, but about understanding your expenses so you can price your services to cover costs and generate a profit. Whether you’re a beginner or a seasoned photographer, mastering this process is key to sustainable income. Here’s a comprehensive guide on how to calculate your cost per session.
1. Break Down Your Expenses
The first step is identifying and categorizing your expenses. In general, you’ll want to consider three types of costs: fixed costs, variable costs, and project-specific costs.
• Fixed Costs are monthly or yearly expenses that don’t change based on the number of sessions you do. Common examples include:
• Studio Rent: If you rent a space for shooting, this is a consistent expense.
• Software Subscriptions: Programs like Adobe Photoshop, Lightroom, or cloud storage have regular fees.
• Insurance: Coverage for equipment, studio, or liability is essential for many photographers.
• Equipment Depreciation: High-end cameras and lenses are investments, but they do lose value over time.
• Variable Costs fluctuate based on each session, and these expenses can vary significantly:
• Travel Expenses: Consider fuel, mileage, and parking if you’re driving to a location.
• Assistant Fees: Some sessions require extra hands for lighting, props, or setup.
• Props or Wardrobe Rentals: Especially important for stylized shoots or commercial photography.
• Client Refreshments: Small expenses like water bottles or snacks add up but enhance the client experience.
• Project-specific costs arise only for certain types of projects:
• Location Permits: Required for certain public or private locations.
• Specialized Equipment Rentals: Extra lighting, drones, or backdrops are sometimes necessary for specific projects.
• Outsourced Editing or Retouching: For large or complex shoots, outsourcing post-production can save time.
2. Calculate Your Monthly Fixed Costs
Add up your fixed costs to find your total monthly expense in this category. Here’s an example:
• Studio Rent: $500
• Software: $50
• Insurance: $30
• Equipment Depreciation: $100
Total Monthly Fixed Cost = $680
This figure will be divided across the sessions you expect to do in a month.
3. Estimate Your Monthly Sessions
Now that you know your total fixed costs, think about your monthly session goal. If you’re aiming for ten sessions per month, your fixed cost per session is calculated by dividing your total fixed costs by the number of sessions:
• $680 ÷ 10 = $68 per session (fixed cost per session)
4. Add Variable and Project-Specific Costs
For each session, add in your variable and project-specific costs. These will vary from project to project, but here’s a sample breakdown:
• Travel: $20
• Props: $15
• Assistant Fee: $50
Total Variable Cost for Session = $85
This step is essential, especially if you’re working on diverse projects with unique expenses. The costs for a portrait session in a local park will differ from a commercial shoot that requires special permits or rented equipment.
5. Calculate the Total Cost Per Session
Now, combine your fixed costs per session and the variable costs for the specific project. Using our example:
• Fixed Cost per Session: $68
• Variable Cost for This Session: $85
Total Cost per Session = $153
6. Decide on Your Profit Margin
Once you know your total cost per session, it’s time to consider your profit margin. A general rule of thumb is aiming for a 20–30% margin, but this can vary based on your market, competition, and personal goals. To add a 30% profit margin to the session rate:
• $153 × 1.3 = $198.90
You can round up for simplicity. In this example, you might set your session rate at $200.
7. Set Your Rate
With this approach, you’ll have a rate that ensures all costs are covered, and you’re making a profit. Use this as your baseline when quoting clients, and feel free to adjust based on additional services or value-added aspects that clients might request.
Why This Matters
Setting your prices without a clear understanding of your costs can lead to undercharging and financial strain. By knowing your cost per session, you’re better equipped to negotiate confidently, scale your business, and achieve sustainable income. Over time, this method will give you the insight needed to adjust prices for different markets and project types, whether you’re doing lifestyle portraits, commercial photography, or events.
Calculating your cost per session isn’t just a math exercise; it’s the foundation of running a profitable photography business. By following these steps, you can create a pricing strategy that reflects the value of your work while securing your business’s financial health.
Here’s a link to buy my book, The Profitable Photographer, which offers more insights and actionable advice on turning your photography passion into a profitable business.
