Income & Work

What Is Overhead?

Overhead is the ongoing cost of running a business that is not directly tied to producing a specific product or service, such as rent, utilities, insurance, software, accounting, and administrative salaries. For freelancers it includes equipment, subscriptions, and professional fees.

Overhead Rate

Overhead rate = total overhead ÷ an allocation base (such as direct labor hours or sales) × 100. It shows how much indirect cost each unit of activity must cover.

🧮 Calculate It Yourself

Put Business Overhead into practice with these free calculators — no sign-up, nothing stored.

💼 Freelance Hourly Rate Calculator Find the hourly rate you actually need to charge — it's not salary ÷ hours. Calculate → 📊 Break-Even Point Calculator How many units do you need to sell before your side business profits? Calculate →

🔗 Related Terms

Fixed Costs Operating Expenses Billable Utilization Rate Break-Even Point

More Income & Work Terms

📖 Browse all glossary terms or explore all free calculators.

Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.