Overhead
Indirect business costs that aren’t tied to specific client projects, including rent, utilities, software subscriptions, administrative salaries, and insurance.
Calculate the true cost of your team including salaries, benefits, overhead, and productivity factors.
Example
An agency calculates their monthly overhead at $25,000 (office rent, tools, admin staff, insurance). With 4 team members delivering 500 billable hours monthly, they determine an overhead cost of $50/hour that must be factored into their rates to remain profitable.
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