Free Contractor Overhead Calculator
Calculate your overhead rate as a percentage of revenue. Understand how much of your revenue goes to indirect business costs.
USD
USD
Overhead Rate
15.00%
Revenue After Overhead$255,000.00
Monthly Overhead$3,750.00
Overhead Rate vs Total Overhead Costs
How to Calculate Contractor Overhead Rate
Formula
Overhead Rate = (Overhead Costs / Revenue) x 100
Overhead includes all indirect costs of running your business: insurance, rent, utilities, vehicle expenses, office supplies, accounting, marketing, and administrative salaries. Knowing your overhead rate helps you price jobs correctly.
Example Calculation
A contractor has $45,000 in annual overhead costs and $300,000 in annual revenue.
- 01Overhead rate = ($45,000 / $300,000) x 100 = 15%
- 02Revenue after overhead = $300,000 - $45,000 = $255,000
- 03Monthly overhead = $45,000 / 12 = $3,750
Frequently Asked Questions
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