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Overhead Cost Calculator

Calculate overhead costs and facility expenses for motorcycle key services with support for equipment depreciation and indirect cost allocation for accurate business planning.

25-45% Revenue Ratio
$15-35 Hourly Rate
±$1.50 Accuracy

Calculate Overhead Costs

Enter your facility and operational costs to determine overhead allocation

Monthly facility rent or lease payment
Electricity, gas, water, internet, phone
General liability, property, workers comp
Total value of key cutting equipment
Expected useful life of equipment
Equipment maintenance and repairs
Accounting, legal, office supplies, etc.
Average operating hours per month

Overhead Analysis Results

Overhead cost breakdown and allocation recommendations

Example Results ($2500 rent, $35K equipment, 160 hrs/month)
Monthly Overhead: $4,918
Hourly Overhead Rate: $30.74
Annual Overhead: $59,016
Cost Category: Moderate

How It Works

Our calculator analyzes facility costs, equipment depreciation, utilities, and administrative expenses to determine accurate overhead allocation rates for sustainable pricing strategies.

  • Facility cost analysis
  • Equipment depreciation
  • Utility allocation
  • Administrative costs

Cost Categories

Comprehensive analysis of all overhead cost categories including fixed costs, variable expenses, and depreciation for accurate cost allocation and pricing.

  • Fixed facility costs
  • Variable utilities
  • Equipment depreciation
  • Administrative expenses

Cost Optimization

Advanced cost optimization tools for overhead reduction, efficiency improvement, and profitability enhancement to maximize business performance and competitiveness.

  • Cost reduction analysis
  • Efficiency optimization
  • Profitability enhancement
  • Performance tracking

Step-by-Step Tutorial

Learn how to use the overhead cost calculator for accurate cost allocation

1

Calculate Facility Costs

Enter monthly rent, utilities, and insurance costs. Include all facility-related expenses such as property taxes, maintenance, and security systems.

2

Determine Equipment Depreciation

Calculate equipment depreciation by dividing total equipment value by useful life. Consider technology obsolescence and maintenance requirements.

3

Include Administrative Costs

Add administrative expenses including accounting, legal, office supplies, software subscriptions, and other indirect business costs.

4

Set Operating Hours

Determine monthly operating hours to calculate hourly overhead rates. Consider seasonal variations and capacity utilization.

5

Analyze Results

Review overhead rates and cost breakdowns to optimize pricing strategies and identify cost reduction opportunities for improved profitability.

Frequently Asked Questions

Common questions about overhead cost calculation and allocation strategies

What costs should be included in overhead calculations?

Overhead costs include rent, utilities, insurance, equipment depreciation, maintenance, administrative expenses, training costs, and other indirect costs not directly tied to specific jobs.

How do I calculate equipment depreciation?

Equipment depreciation is calculated by dividing the equipment cost by its useful life in years, then dividing by hours of operation per year to get hourly depreciation cost.

What percentage of revenue should overhead costs represent?

Overhead costs typically represent 25-45% of total revenue for locksmith businesses, depending on facility size, equipment investment, and operational efficiency.

How often should I review overhead cost calculations?

Review overhead costs quarterly to account for changes in rent, utilities, insurance rates, equipment additions, and operational changes that affect cost allocation.

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