Contractors · Calculator

Contractor Overhead Rate Calculator

Convert annual overhead into an hourly amount to recover through billable work.

CurrencyDisplay only. Your numbers are not converted.

How to use this Contractor Overhead Rate Calculator

Convert annual overhead into an hourly amount to recover through billable work. Enter your numbers above and Okomit calculates the result instantly.

Contractor Overhead Rate Calculator formula

Overhead Recovery Rate = Annual Overhead ÷ Total Billable Hours

Example

$120,000 of annual overhead spread across 6,000 billable hours requires $20 per billable hour for overhead recovery.

How to use the result

Review the rate when staffing, billable utilization, rent, insurance, vehicles, or office costs change.

Frequently asked questions

Is this calculator free?

Yes. This Okomit calculator is available as a free tool.

Does Okomit save the numbers I enter?

Guest calculations remain in the browser unless you choose a feature that explicitly saves work. Logged-in Okomit features may support saved scenarios where available.

Can I use this for business planning?

Yes, as a planning aid. Review important business, tax, legal, lending, or accounting decisions with the appropriate professional when needed.

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