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Electrical

Electrical Overhead Calculator

Assemble the monthly cost of keeping an electrical contracting business ready to work before assigning it to prices.

Your numbers

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Result

Overhead per month $12,950
Overhead per year $155,400
Overhead rate 37.5% As a share of revenue
Cost of opening the doors $588.64 Per working day
Overhead runs $12,950 a month, 37.5% of revenue. Every working day costs $588.64 before anybody turns a wheel.

Overhead is what the business costs whether or not you work. Wages for people who are on jobs belong in job cost instead, and counting them here overstates overhead and underprices everything.

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What moves the number

  • Include recurring office, fleet, insurance and administrative costs.
  • Convert annual bills to the same monthly basis as the revenue entry.
  • Check miscellaneous expenses against the ledger instead of guessing one balancing figure.

Where this one goes wrong

Duplicate fleet and management costs inflate the total when they also appear in burdened labour or direct job charges. Write down the allocation rule before changing prices, so every cost is recovered once.

Questions

About this calculator

Do wire and breakers belong in overhead?

Materials traceable to a specific customer job normally belong with that job for this exercise. Shared stock losses or general consumables need a consistent allocation policy.

How should an annual insurance renewal be entered?

Spread the cost across the period used for this operating budget. Keep the actual payment timing separately in cash planning.

What does cost of opening the doors mean?

It spreads the modeled overhead across the tool's working-day convention. It is an allocation aid, not a statement that each day produces equal billable work.

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The formula

overhead rate = monthly overhead / monthly revenue

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How to use this calculator

  1. Premises per month ($). Enter your own figure; the page starts at $1,800.
  2. Office and management wages ($). Enter your own figure; the page starts at $5,200.
  3. Vehicles, fuel and maintenance ($). Enter your own figure; the page starts at $2,400.
  4. Insurance and licensing ($). Enter your own figure; the page starts at $900.
  5. Software, phones and internet ($). Enter your own figure; the page starts at $450.
  6. Marketing and advertising ($). Enter your own figure; the page starts at $1,500.

The result updates as you type, so you can try a figure, see what it does to overhead per month, and change it back. Nothing you enter is sent anywhere or saved.

A worked example

These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.

What goes in

InputValue
Premises per month$1,800
Office and management wages$5,200
Vehicles, fuel and maintenance$2,400
Insurance and licensing$900
Software, phones and internet$450
Marketing and advertising$1,500
Everything else$700
Monthly revenue$34,500

What comes out

ResultValue
Overhead per month main result$12,950
Overhead per year$155,400
Overhead rate37.5%
Cost of opening the doors$588.64

Overhead runs $12,950 a month, 37.5% of revenue. Every working day costs $588.64 before anybody turns a wheel.

How sensitive the answer is

Holding everything else steady and changing only premises per month, this is what happens to overhead per month. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.

Premises per month ($)Overhead per month
$900 $12,050
$1,350 $12,500
$1,800 example above $12,950
$2,700 $13,850
$3,600 $14,750

Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.

What each figure means

Premises per month ($)
A money amount, starting at $1,800.
Office and management wages ($)
A money amount, starting at $5,200.
Vehicles, fuel and maintenance ($)
A money amount, starting at $2,400.
Insurance and licensing ($)
A money amount, starting at $900.
Software, phones and internet ($)
A money amount, starting at $450.
Marketing and advertising ($)
A money amount, starting at $1,500.
Everything else ($)
A money amount, starting at $700.
Monthly revenue ($)
A money amount, starting at $34,500.

What the results tell you

ResultWhat it is
Overhead per monthThe headline result. A money figure.
Overhead per yearA money figure.
Overhead rateA percentage.
Cost of opening the doorsA money figure.

Before you rely on this number

Conductor sizing, voltage drop and load figures are governed by code, and the code takes precedence over any calculator. Ambient temperature, conduit fill, continuous load factors and the specific installation all change the answer. Treat this as a first pass, not a design.

Estimating is the easy part

The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.