Construction · Free Interactive Tool
Overhead Recovery Rate
How much to add per hour to cover overhead.
Your Numbers
The Result
The Operator's Read
You must recover about $60.00/hour just for overhead — before any profit. Bidding at cost + profit but forgetting this line is the classic path to a busy, broke shop.
Built by The Crimson Bench · Educational tool, not financial advice
About the Overhead Recovery Rate
Divide annual overhead by billable hours to see the overhead you must recover on every hour you bill.
How the Overhead Recovery Rate Works
2 inputs in, 1 results out — computed live on your device. Here's exactly what it uses.
| Input | Example value |
|---|---|
| Annual overhead | $180,000 |
| Billable hours / year | 3,000 |
Worked Example
Using the example inputs above, the tool returns:
Overhead per hour
$60.00
The Operator's Read
You must recover about $60.00/hour just for overhead — before any profit. Bidding at cost + profit but forgetting this line is the classic path to a busy, broke shop.
Assumptions & Limitations
- •This is a single-point calculator — it answers one question at a time. For a full time-based projection, use the matching Toolkit Pro simulator.
- •Defaults are illustrative. Replace them with your real numbers before relying on the result.
- •Educational tool only — not financial, investment, tax, or legal advice.
Frequently Asked Questions
What does the Overhead Recovery Rate calculate?
Divide annual overhead by billable hours to see the overhead you must recover on every hour you bill. It takes 2 inputs — Annual overhead, Billable hours / year — and returns Overhead per hour.
How do I use the Overhead Recovery Rate?
Enter your figures in the fields above and the result updates instantly. No signup, no limits, and nothing leaves your browser — the math runs on your device.
Is the Overhead Recovery Rate free?
Yes, completely free. For the full time-based simulation — projection tables, scenarios, Excel/PDF export, and AI analysis — see the matching Toolkit Pro simulator.
Who built this tool?
The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. It uses the exact method they'd apply in an engagement.
Is this financial advice?
No. The Overhead Recovery Rate is an educational tool for directional planning — not financial, investment, tax, or legal advice.
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The Crimson Bench · Est. 2002 · Founded in New York City
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