Use this calculator to estimate an hourly overhead recovery rate and an allowance for a job or project. It helps turn annual overhead and productive time into a planning figure; it does not set a customer price by itself.
What to enter
Enter annual overhead and annual productive hours for the same stated year. Then enter the particular job’s expected hours; those job hours are not annual hours.
What the result means
The result divides annual overhead by annual productive hours, then applies that per-hour rate to the particular job hours. Zero overhead or zero job hours can be meaningful; zero productive hours cannot produce a useful rate.
Worked example
Annual overhead of £60,000 over 2,000 productive hours produces £30 per hour. A 56-hour job therefore carries an indicative £1,680 overhead allowance.
Limitation and next step
Review the allowance alongside direct cost, capacity and the price you need to charge. It is a management estimate, not a quoted entitlement.
Important
General information only. It is not a tax, accounting, legal or financial determination for a particular business.
Next step
Compare the result with your current prices and capacity; investigate the assumption that makes the largest difference before changing a quote.
Sources and review
- Evidence check date: 5 November 2026.