Overhead Rate

To help you calculate profitability, there is a field in Location Settings where you can enter your Overhead Rate (operating costs) for each location. This article shows our recommended method of figuring out your overhead costs.

Additional Resources

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Overhead Rate (Hourly)

This number is an hourly rate, keeping in mind there are 24 hours in a day.

  • List all of your monthly bills for a location - rent, utilities, internet, cleaning, etc.
  • If you have any bills/expenses that are not billed monthly, divide them down into a monthly equivalent.
  • Add the monthly pay of any salary employees.
  • Add together all of these totals. Divide that sum by the total number of hours in a month (730).
    • This number was calculated by the following: 24 (hours in a day) * 365 (days in a year) = 8760 hours. 8760 hours / 12 months = 730 hours per month.
  • The sum of your expenses / 730 = the number of your Overhead Rate. We have found the industry average to be ~ $15 - $25.

By calculating everything at an hourly rate, you will be able to monitor break-even/profitability progress down to the current day/week/month/etc. The system will automatically calculate the rest of the numbers.

  • Total Revenue = Income + Other Income
  • Total Costs = Cost of Goods Sold (COGS) + Returns and Allowances + Indirect Labor + Overhead Rate

Entering Your Overhead Rate in RepairQ

1. Log into your RepairQ location. On the Navigation Bar, go to Settings -> Location Settings.

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2. On the Settings Overview page, click Location Info.

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3. On the Location Info page, scroll down until you see the field marked Overhead Rate. Enter your calculated amount and click Save to submit your change.

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