Tool 03 · Cost
Contractor Overhead Recovery Calculator
Spread the annual cost of keeping the business open across productive hours, revenue, and direct job cost without mixing the denominators.
- Math shown
- Local calculation
- No signup
DecisionHow much overhead must each productive hour or job-cost dollar recover?
Live calculator
Enter your numbers
Your result
Overhead per productive hour$20.00
- Overhead as % of revenue
- 20%
- Overhead per direct-cost dollar
- 30%
- Monthly overhead
- $10,000.00
Planning estimate based only on the values above. Inputs remain in this browser and are not submitted.
Method
How the calculation works
- Overhead/hour = annual overhead ÷ productive field hours
- Revenue overhead rate = annual overhead ÷ annual revenue
- Direct-cost recovery rate = annual overhead ÷ annual direct job cost
Worked example
$120,000 of overhead across 6,000 productive hours is $20/hour. It is also 20% of $600,000 revenue or 30% of $400,000 direct cost—different rates for the same dollars.
Read the full methodologyKnow the boundary
What this estimate does not decide
- Choose one recovery basis consistently; these percentages are not interchangeable.
- Classification should follow the company's accounting policy and job-costing system.
Questions
Overhead recovery FAQ
Is overhead the same as profit?
No. Overhead is a business cost. Profit is what remains after the relevant costs are recovered.
Which overhead rate should I use?
Use the denominator that matches how your company estimates and tracks work, then apply it consistently.