Around how much should I charge for a logo for a friend’s cupcake business?

Without knowing it, you are setting your friend on a complicated course that will cause more than a few headaches. If you value your friendship, charge nothing.

As the professionals have pointed out, your effort falls short of what’s considered industry best practice and here is why.
 
You stated this is for a business card.
Graphic designers automatically understand that a logo is never “just for a business card.” A logo is the symbolic shortcut and identifier of a business; it’s a branding tool. It’s going on the packaging, his website, signs, letterhead, labels, and everywhere and on everything he wants to brand.

With that as a starting point, evaluate your design.
Take your existing design and reduce it until it fits a 1” square.
Notice how the text becomes unreadable?

Enlarge the logo until it fills the screen.
Notice how the “el” is now visually disassociated from the other text?

Next, convert the logo to RGB, CMYK, and web colors.
How much color distortion occurs from your original color choices?

None of this gets to the core fundamentals of logo design which is a much deeper discussion for another time.
Read this for a start:


Give him your best effort for free and explain to him that this is just a temporary design only to be used until he can afford an upgrade.

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