**Overhead Rate (hourly)**

To help you better calculate your profitability, there is a field in Location Settings where you can enter your overhead costs for each location. *This article walks you through calculating the hourly rate with methods available with RepairQ 1.15*

This number is an hourly rate, keeping in mind there are 24 hours in a day. Here is how we recommend you calculate this number:

- Add up all of your monthly bills for a location, i.e. rent, utilities, internet, cleaning, etc.
- If you have any bills/expenses that are not billed monthly, divide them down to a monthly equivalent.
- Add the monthly pay of any salaried employees.
- Divide that sum by the
**total number of hours in a month (730)**. This number was calculated by:- 24 hours in day, multiplied by 365 days in a year: 8760
- Divide that by 12 months: 730

- This number is your hourly overhead rate, plug this into the "Overhead Rate" field. We have found somewhere in the vicinity of $10-20 to be the industry average.

By calculating everything with an hourly rate you will be able to monitor break-even/profitability progress down to the current day (you can also view for the week, month, quarter, and year). The system will automatically calculate the rest of the important numbers:

- total revenue = income + other income
- total costs = cost of goods + returns & allowances + indirect labor + operating costs(overhead rate)

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