Overhead Rate Calculation
The percentage added to billable rates to cover overhead—helps maintain profitabilityThe difference between revenue and costs—essential to sustaining and scaling creative businesses..
What is Overhead Rate Calculation?
Used to determine how much overheadThe costs of running your business beyond direct project expenses—rent, software, salaries, etc. applies to each hour of work—vital for agency profitability.
Dive Deeper
Overhead Costs FormulaTotal indirect expenses divided by the number of billable hours or output—used to price services., Billing PlanThe structure for when and how a client gets charged—retainer, milestone, or monthly, it sets financial expectations., Utilization RateThe percentage of time team members spend on billable work—key for agency profitability., Cost Allocation, Project ProfitabilityMeasuring how much profit a specific project generates—used for pricing, planning, and client evaluation.
