Overhead Cost Calculator
Use this overhead cost calculator to spread your monthly overhead across jobs so you can recover more of the hidden cost of running the business.
What This Calculator Does
This calculator divides monthly overhead by the number of jobs you expect to complete. It gives you a quick overhead-per-job figure to use when pricing work.
How to Use
- Enter total monthly overhead.
- Enter jobs completed per month.
- Click calculate.
- Use the result in your pricing or quote process.
Example
If monthly overhead is $9,000 and you usually complete 18 jobs a month, the calculator shows the overhead cost that each job needs to carry.
Why This Calculation Matters
Overhead is where many contractors silently lose money. Vehicles, insurance, admin, software, rent, and tools all need to be recovered somewhere.
Common Mistakes
- Ignoring small business expenses that add up.
- Only using material and labour in quotes.
- Not reviewing overhead when costs rise.
- Spreading overhead across too many jobs unrealistically.
FAQs
What is overhead?
Overhead is the cost of running the business that is not tied to one specific job, such as insurance, office costs, software, and vehicles.
Should overhead be added to every quote?
Yes. If you do not recover overhead through jobs, profit disappears fast.
How often should I review overhead?
Monthly or quarterly is a good habit, especially when costs change.