Fixed costsRecovery rateProfit clarity
Shop Overhead Allocator
Turn rent, utilities, insurance, tool payments, and other fixed costs into a clean overhead rate you can apply to any project. No more “eh… I think we’re fine” pricing.
What to include
Common overhead buckets
- • Rent / mortgage / shop lease
- • Utilities (electric, gas, water)
- • Insurance (shop + liability)
- • Software + subscriptions
- • Tool payments, maintenance, blades/bits
If it keeps the shop existing even on days you build nothing, it belongs here.
Shop Overhead Allocator
Distribute your shop’s fixed monthly expenses across all projects and apply a profit margin to find the markup you should charge per project.
Overhead per Project:$0.00
Suggested Markup (with profit):$0.00
How to use
- Enter monthly shop expenses (fixed costs).
- Choose how you want to distribute (hours, projects, revenue).
- Review overhead-per-hour or overhead-per-project results.
- Apply your profit margin on top for pricing targets.
Pro tips
- • Base your “billable hours” on reality, not optimism (track a week, then extrapolate).
- • Separate variable costs (materials, shipping) from overhead so you don’t double-count.
- • Revisit overhead quarterly, especially after tool upgrades or space changes.
FAQs
Overhead vs profit, what’s the difference?
Overhead keeps the doors open. Profit is what you earn after all costs (materials, labor, overhead) are paid. Recover overhead first, then add profit margin.
What if my shop is part-time?
That’s exactly why this helps. Part-time shops usually have higher overhead-per-hour. Use a realistic billable hour estimate so your pricing doesn’t under-recover.