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.
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.
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?
Read the guideSee examples, formula notes and limitations.