Cost methodology
Review the denominator and allocation method before using the result in pricing.
Free calculator example · US
Photography cost baseline worked example
See an invented US portrait-studio overhead plan annualized and allocated across planned completed bookings.
Business question
How much recurring overhead does this invented studio need to allocate to each planned completed booking?
The existing calculator annualizes six invented recurring-cost rows and divides the total by the entered planned completed-booking count.
Inputs
Start with allowlisted invented values.
- The six cost rows are invented annual planning inputs, not recommended spending levels.
- USD is a display label only; PortraitPace does not convert currencies.
US · Kit-aligned
Kit overhead allocation baseline
An invented annual-overhead baseline aligned with the Kit workbook QA render.
- Currency label
- USD
- Software and subscriptions
- Category: Software services · Amount: 2,400 USD · Cadence: Annual
- Insurance
- Category: Insurance licenses · Amount: 1,800 USD · Cadence: Annual
- Studio or storage
- Category: Studio office · Amount: 9,600 USD · Cadence: Annual
- Marketing
- Category: Marketing sales · Amount: 3,600 USD · Cadence: Annual
- Equipment reserve
- Category: Equipment replacement · Amount: 4,200 USD · Cadence: Annual
- Professional and admin
- Category: Professional services · Amount: 2,400 USD · Cadence: Annual
- Planned Completed Bookings
- 80
Process
Reproduce the calculation in order.
- 01
Group recurring studio costs by operating category and annualize each entered amount.
- 02
Add the annualized rows to calculate total annual fixed overhead.
- 03
Divide annual fixed overhead by 80 planned completed bookings to calculate the allocation.
Results
Outputs derived from the trusted calculation boundary.
These tables are generated at build time from the allowlisted catalog and existing calculator functions. The editorial entry does not copy the result values.
Calculated from the inputs above
Kit overhead allocation baseline
| Result | Calculated value |
|---|---|
| Annual fixed overhead | 24,000 USD |
| Monthly fixed overhead | 2,000 USD |
| Overhead per completed booking | 300 USD |
| Planned completed bookings | 80 |
Interpretation
What the outputs do—and do not—show.
- The calculated per-booking allocation is a planning bridge between recurring overhead and later pricing decisions; it is not a market rate.
- Changing either total overhead or the planned completed-booking count changes the allocation.
Limitations
Boundaries to keep visible.
- The example excludes direct client costs, event-specific costs, taxes, depreciation treatment, and owner income tax.
- A real studio should classify its own records consistently and review the booking denominator when capacity changes.