TenorOpsBusiness, Pricing & Revenue Calculators · Expense Analysis
Free Overhead Cost Calculator | Overhead Rate, Per-Unit & % of Revenue
Calculate your business overhead rate as a percentage of direct labor, overhead cost per unit, and overhead as a percentage of total sales revenue.
Overhead & Production
Overhead Cost Inputs
Results
Overhead Allocation Metrics
Step-by-step guide
How to Use the Overhead Cost Calculator
- 1Pick Easy Mode or Advanced Mode
Enter a single Total Overhead figure in Easy Mode or itemize Rent, Utilities, Insurance, and Maintenance in Advanced Mode.
- 2Enter Direct Labor Costs, Sales Revenue, and Units Produced
Provide your monthly direct labor payroll, gross sales revenue, and units or service jobs completed.
- 3Review Overhead Rate, Per-Unit Cost, and % of Revenue
Use these three metrics to price jobs and menu items accurately.
Formula & methodology
Three Ways to Calculate Overhead
Overhead Rate (%) = (Total Overhead Costs ÷ Direct Labor Costs) × 100 Overhead Per Unit ($) = Total Overhead Costs ÷ Units Produced or Jobs Completed Overhead % of Revenue = (Total Overhead Costs ÷ Total Sales Revenue) × 100
Common questions
Frequently Asked Questions
What are overhead costs?
Overhead costs are indirect expenses required to operate your business that are not tied to a single unit of food or billable service—such as rent, property insurance, utilities, software subscriptions, and office salaries.
What is a healthy overhead percentage of revenue?
Most profitable small businesses and restaurants keep fixed overhead between 15% and 25% of gross revenue.
Why is annual insurance divided by 12 in Advanced Mode?
Converting annual insurance premiums into a monthly figure aligns all expenses to a single monthly accounting period.
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