Overhead Rate Calculator
Calculate your business overhead rate to understand the true cost of operations, including overhead cost per employee.
Overhead Rate Analysis
Overhead rate measures how much of your spending goes to indirect costs versus revenue-generating activities.
Overhead Rate = (Total Indirect Costs / Total Direct Costs) × 100
Overhead per Employee = Total Indirect Costs / Number of Employees
Indirect costs (overhead):
- Rent and utilities
- Insurance
- Administrative salaries
- Office supplies
- Software subscriptions
- Depreciation
Direct costs:
- Production labor
- Raw materials
- Direct project expenses
Healthy overhead rates by industry:
- Manufacturing: 15-25%
- Professional services: 25-50%
- Retail: 20-35%
- Construction: 10-20%
- Technology: 30-50%
Goal: Keep overhead rate as low as possible while maintaining quality and compliance.