How To Price My Art, Artwork Pricing Guide And Chart (2022)

How to price artwork formula

LOW PRICING

If you are pricing your art for the first time, I recommend calculating all the production costs as your baseline price (the lowest price you should be charging). After knowing how much it cost you to produce your works, you can decide on the margin you wish to add later on.

My simple math is adding up the following:

#1: Paintings cost

This is the most obvious: paint, canvas, frames, and anything that are essential to the making of your art. Also consider the equipment you need, such as easels, projectors and computers. They are not consumed immediately but they do break down slowly. You can amortize each year according to the asset’s lifespan.

#3: Art rate: Labour cost

I recommend giving yourself a minimum wage at the very start. Find out what’s the minimum wage (hourly rate) in your region and multiple by the hours you spent painting per month. As your experience grows, you can increase your pay.

#3: Business cost

The term business cost typically includes all the costs incurred in running your art business. Here I mean all the costs associated with your entrepreneurial status, such as business license, social security contribution, office or studio rental, payrolls. If you simply wish to make art as a hobby, you can reduce this part significantly.

#4: Marketing cost

Typically, marketing cost is calculated as a part of the business cost, but you might spend on marketing without running a business. If you are serious about your art career, make sure you create a marketing budget. You need an artist website and/or a web store, maybe some Facebook ads to promote your art. You need to pay for services such as professional photography. Everything that has to do with getting your work out there is a part of the marketing cost.

#5: Taxes

You might be obligated to collect sales tax or VAT from your customers on behalf of the government. Consult your local CPA if you are not sure how much you should be charging. However, don’t add your own personal income tax to this part. It’s a personal responsibility, not a part of your art business.

#6: Other unexpected costs

As your business expands, some unexpected events might occur. You might have to pay for the lawyer’s consultation fee. You might need some restoration for unexpected damages. I suggest to always charging 10% on top and saving money for emergencies.

You can calculate all the above-mentioned costs in a period of time (e.g. 3 months), then divide by the number of finished works in that period. It gives you an idea of how much you need to charge as a minimum.

Pricing artwork tip

Here you might find a slight problem: you need all your works sold to cover the costs. This baseline pricing calculation works better for commissioned art when you know you will sell all of them. Make sure you charge higher than your baseline price when you know you won’t be selling every piece of work. This way you can cover the cost of producing unsold works.