Glossary › Overhead

Overhead

Costs that keep the business running but aren't tied to any specific sale — rent, admin wages, insurance.

Overhead is the layer of costs not attributable to any particular job or sale: rent, admin wages, insurance, accounting fees, general software. Because overhead persists whether sales happen or not, it defines your break-even.

Pricing must recover a fair share of overhead on top of direct costs — forget it and busy months still lose money.

Related terms

Operating Expense (OpEx) Break-Even Point Cost of Goods Sold (COGS)

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