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A clearer view of your numbers

Overhead Recovery Calculator

Allocate your annual fixed overhead across expected billable hours and optionally estimate the overhead assigned to a specific job.

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Your inputs

01 / Enter

These are editable examples, not recommended rates. Enter your own numbers.

Calculator inputs

Your annual fixed overhead budget; do not include costs already charged directly to jobs.

Expected invoiceable hours across the same business capacity as the overhead budget.

Blank omits the job allocation. Cannot exceed the annual billable hours.

Your result

02 / Understand

Loading the example calculation…

Show the math

Estimates use unrounded numbers. Displayed amounts round to cents.

What this means

Rent, administrative software, office costs, and business insurance can be overhead when they are not charged directly to a job. This tool allocates only the amount you enter. The allocation helps plan recovery of shared costs; it is not itself a new cash expense.

Worked example

For an illustrative $30,000 annual overhead budget and 1,500 billable hours, recovery is $20/hour. Monthly equivalent is $2,500. A 10-hour job receives a $200 allocation. If annual billable hours fall to 1,000, recovery rises to $30/hour.

How the math works

Overhead recovery per billable hour = annual overhead ÷ annual billable hours. Monthly equivalent = annual overhead ÷ 12. Job overhead allocation = recovery per hour × job hours.

About this estimate

Use one annual period and the same workforce scope. All hours are billable hours, not total paid time. General overhead excludes costs already counted in job labor, materials, or another allocation. Zero billable hours make hourly allocation undefined. Optional blank job hours omit the job result.

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Formula v1.0.0 · Reviewed · Tool ID: overhead-recovery