Here you can choose the currency you are working in, then add your monthly business expenses. The tool will automatically calculate the hourly and daily expenses to factor in to your price.
Setting a minimum markup gives you a useful indication of what level you don’t want to go under. It mitigates risk just in case the project takes a little longer than expected, or you need some additional materials you hadn’t factored in. It’s a buffer.
Markup is the percentage you add on top of your costs to make a profit. If you only bill the client for your expenses and time costs, you will only break even. Marking up your costs is essential to growing your business and making a profit.
We add in markup at this stage so if the client cancels the project and doesn’t pay you for usage, you still make a profit on the project.
This is up to you, and you can experiment with it. Your markup rate is useful if the client negotiates prices with you. If you add a 30% markup and the client says: “can you do it cheaper?” then you know you have some flexibility. You could reduce the markup to 25% or 20% for example. The client gets a cheaper price overall, and you know you are still making a profit.
Setting a minimum markup mitigates risk just in case the project takes a little longer than expected, or you need some additional materials you hadn’t factored in. It’s a buffer.
Based on the details you entered, you can now see:
*If the client asks you to itemise the quote, you can send them the production cost figure and the usage fee figure. (Don’t share your markup).
This illustration pricing calculator is only a guide, and shouldn't be used as your ultimate decision making tool. Use it as an addition to your usual pricing methodology to help you reach the right outcome.