No matter what industry you’re in, this template offers a quick and easy way to add up the overhead costs in your business.
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What are overhead costs?
Overhead refers to the ongoing business expenses not directly attributed to creating a product or service. It is important for budgeting purposes but also for determining how much a company must charge for its products or services to make a profit. In short, overhead is any expense incurred to support the business while not being directly related to a specific product or service
How to calculate overhead costs
Calculating overhead costs is basic addition—you just need to know which categories to add up. Just combine all business costs that are not directly related to creating a product or service. This includes:
- Sales promotion
- Advertising and PR
- Staff costs
- Recruitment expenses
- Property taxes
- Premises insurance
- Gas and oil
- Motor repairs
- And more
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