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
The content and templates are provided for informational purposes only and are provided as-is and as available basis. You should not construe any such information or other material as legal, tax, investment, financial, or other advice.
All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. For questions or advice regarding your business’s specific circumstances, please consult your business financial advisor. Nothing in the site constitutes professional and/or financial advice, nor does any information on the site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Divvy is not a fiduciary by virtue of any person’s use of or access to the site or the templates provided herein. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the site before using the templates provided or making any decisions based on such information or other content. You agree not to hold Divvy, its affiliates or any third party service provider liable for any possible claim for damages arising from your use of the templates provided herein or any decision you make based on information or other content made available to you through the site.