FleetZap · Features · Solutions · FleetZap Maintenance · FleetZap Rentals · FleetZap Dispatch · FleetZap GPS Tracking · What a CMMS does · GPS tracking & engine hours · Dispatch & route optimization · Rentals module · Industries · Customers · Resources · Free calculators · Free templates · Pricing · Contact

Overhead rate calculator

Free maintenance calculators Free calculator

Your overhead rate per direct labor hour and as a share of direct labor cost, so every job and repair carries its fair part of rent, utilities, office staff and the rest.

Your numbers

See your result

Result

Overhead per labor hour $30.91 As a share of labor cost 52.0% Labor plus overhead per hour $90.34 Stop working this out by hand

FleetZap work orders record labor time, parts and outside work for each job, the direct costs your overhead rate is spread over.

See FleetZap Maintenance · Try the demo
How it’s calculated

The formula

Overhead rate = Overhead costs ÷ Direct labor hours (or ÷ Direct labor cost)

With the example: $180,000 ÷ 5,824 hours = $30.91 an hour, or 52% of labor cost. Pick one base and use it the same way on every job: labor hours suit shops, labor cost suits mixed crews. Machine hours are another base for equipment-heavy work. The mechanic labor rate calculator uses the same numbers to set a shop rate.

Using the number

What to do with it

  • Overhead that isn’t charged to jobs still has to be paid; leaving it out makes every job look more profitable than it is.
  • A falling number of billable hours raises the overhead rate even when costs stay flat.
  • Review overhead once a year and cut what doesn’t help get work done.
Learn more

Guides behind this calculator

Heavy equipment cost per hour Equipment lifecycle cost Maintenance KPIs
Free tools

More free calculators

Downtime cost calculator MTBF calculator OEE calculator Equipment cost per hour calculator Equipment depreciation calculator Equipment rental rate calculator Next PM due calculator EOQ calculator Safety stock calculator Reorder point calculator Truck cost per mile calculator Equipment total cost of ownership calculator MACRS depreciation calculator Section 179 calculator for equipment Equipment financing calculator Equipment utilization calculator Mechanic labor rate calculator Hydraulic cylinder calculator Generator fuel consumption calculator Weibull reliability calculator Inventory turnover calculator Parts markup calculator Truck loan calculator Equipment lease vs buy calculator Fuel surcharge calculator Freight rate calculator IFTA fuel tax calculator Axle weight and bridge formula calculator Fleet fuel savings calculator Engine hours to miles calculator Bolt torque calculator MPG calculator (fuel economy) Vehicle depreciation calculator Mileage reimbursement calculator Cubic yards to tons calculator Generator size calculator Uptime calculator Vehicle maintenance cost calculator Fuel tank capacity calculator Air compressor CFM calculator Trailer tongue weight calculator Trip fuel cost calculator Towing cost calculator Break-even calculator Owner-operator salary calculator Labor burden calculator Excavation cost calculator Sling angle calculator GVWR and payload calculator NMFC freight class calculator Towing capacity calculator Lawn mowing price calculator Landscaping cost calculator Snow removal pricing calculator TRIR and DART rate calculator
Put it to work

FleetZap Maintenance

The heart of FleetZap, and everything a maintenance team needs in one place: work orders and preventive maintenance, inspections and the field app, plus a parts store with purchasing, compliance and certificate tracking, multi-location assets with a full lifecycle, and the KPIs that prove it’s working.

  • Work orders
  • Preventive maintenance
  • Procedures, inspections & field app
  • Parts & purchasing
  • Compliance
  • Assets, reports & KPIs
Explore MaintenanceTry the demo
Questions

Good to know

How do you calculate the overhead rate?

Divide yearly overhead by direct labor hours (or direct labor cost). $180,000 over 5,824 hours is about $30.91 an hour.

What counts as overhead?

Costs that support the work but aren't charged to one job: rent, utilities, insurance, software, office staff and supervisors.

Labor hours or labor cost as the base?

Labor hours suit shops where rates are similar; labor cost suits mixed crews with very different wages. Use one base consistently.

See FleetZap on your own fleet

Book a 20-minute walkthrough, or poke around the live demo company right now.

  • Set up with you, on your machines
  • Works fully by hand, GPS optional
  • Live demo, no sign-up
Book a demoTry the live demo

Book a demo · Try the live demo