Calculate Overhead Rate
A metric to track agency efficiency—how much it costs to operate versus how much is billed.
What is Calculate Overhead Rate?
OverheadThe costs of running your business beyond direct project expenses—rent, software, salaries, etc. rate is calculated by dividing indirect costs by billable hours—crucial for agency profitabilityThe difference between revenue and costs—essential to sustaining and scaling creative businesses..
Dive Deeper
Overhead CostExpenses that support operations but aren’t tied to specific projects., Profitability, Project Budget ManagementTracking the financial side of a project—helps prevent scope creep and ensures margins hold., Finance ManagementKeeping budgets tight and cash flow clean—essential for agency profitability and client trust., Utilization RateThe percentage of time team members spend on billable work—key for agency profitability.
