Definition
Overhead
The costs of running a business that do not belong to any one product: studio rent, utilities, insurance, software subscriptions, tools, marketing and your own time on administration.
Overhead has to be recovered across everything you sell, which is why a maker with a dedicated studio needs a different price from one working at the kitchen table. The simplest approach is to divide your annual overhead by the number of items you expect to sell.
Tools that use this term
Product Cost Calculator
Add up what one handmade item actually costs to make, with the waste share and the overhead included.
Profit Margin Calculator
See the difference between a margin and a markup on the same cost, and price from either one deliberately.
Break Even Calculator
Find the number of units a stall, a range or a workshop has to sell to cover its fixed costs, after fees.