Free calculator

Overhead Rate Calculator

Free Overhead Rate Calculator with instant browser-based results and a clear calculation breakdown.

Overhead Rate Calculator

Calculate your business overhead allocation rate

Instructions: Enter your total overhead costs and the allocation base (direct labor costs, direct labor hours, or machine hours) to calculate the overhead rate. This rate helps determine how much overhead cost should be allocated to each unit of production.
Please enter a valid overhead cost amount
Please enter a valid allocation base value
Overhead Rate
0%

Calculation Breakdown

Total Overhead Costs: $0.00
Allocation Base: $0.00
Overhead Rate: 0%
Cost per Unit of Base: $0.00
Formula: Overhead Rate = (Total Overhead Costs ÷ Allocation Base) × 100

What this means: The overhead rate represents the percentage of overhead costs relative to your allocation base. This rate is used to allocate indirect costs to products or services.
Want to understand the calculation?
See examples, formula notes and limitations.
Read the guide