Accountants Overhead Cost (Hourly) Calculator Examples
Worked examples showing how annual operating costs and billable hours affect an accounting firm's hourly overhead cost.
These examples show how the same overhead calculation works for different accounting practice sizes and billable-hour expectations. All figures are illustrative estimates in pounds.
Small practice with lean overhead
Low-overhead accounting practice with modest annual billable capacity.
Input Summary
Total annual overhead
£36,000
Expected annual billable hours
1,500 hours
Fee-earning accountants
2
Calculation Breakdown
- 1Hourly overhead£36,000 ÷ 1,500£24.00 per hour
- 2Overhead per accountant£36,000 ÷ 2£18,000 per year
Result Summary
Overhead per accountant
£18,000 per year
Accountants Overhead Cost (Hourly) Calculator
Estimated overhead is £24.00 for every billable hour.
Established local accounting firm
Medium-sized firm using the calculator's example cost categories.
Input Summary
Total annual overhead
£90,000
Expected annual billable hours
3,600 hours
Fee-earning accountants
5
Calculation Breakdown
- 1Hourly overhead£90,000 ÷ 3,600£25.00 per hour
- 2Overhead per accountant£90,000 ÷ 5£18,000 per year
Result Summary
Overhead per accountant
£18,000 per year
Accountants Overhead Cost (Hourly) Calculator
Estimated overhead is £25.00 per billable hour and £18,000 per accountant annually.
Higher-cost specialist firm
Higher operating costs with strong anticipated client utilisation.
Input Summary
Total annual overhead
£210,000
Expected annual billable hours
6,000 hours
Fee-earning accountants
8
Calculation Breakdown
- 1Hourly overhead£210,000 ÷ 6,000£35.00 per hour
- 2Overhead per accountant£210,000 ÷ 8£26,250 per year
Result Summary
Overhead per accountant
£26,250 per year
Accountants Overhead Cost (Hourly) Calculator
Estimated overhead is £35.00 per billable hour.
Effect of lower-than-expected billable hours
Comparing a realistic plan with a lower billable-hours estimate.
Input Summary
Total annual overhead
£90,000
Original annual billable hours
3,600 hours
Revised annual billable hours
3,000 hours
Calculation Breakdown
- 1Original hourly overhead£90,000 ÷ 3,600£25.00 per hour
- 2Revised hourly overhead£90,000 ÷ 3,000£30.00 per hour
- 3Change in hourly overhead£30.00 - £25.00£5.00 per hour
Result Summary
Change in hourly overhead
£5.00 per hour
Accountants Overhead Cost (Hourly) Calculator
Reducing expected billable hours by 600 raises hourly overhead from £25.00 to £30.00.
How to Read Your Results
Hourly overhead is the operating-cost share allocated to one invoiced client hour.
A lower hourly result can come from lower costs, more billable hours, or both.
Annual overhead per accountant is an equal allocation for comparison, not a measure of an individual's actual costs.
Use the result as a planning baseline rather than a final pricing decision.
Assumptions & Important Notes
- All costs are annual and expressed in the same currency.
- Billable hours are combined invoiced hours for the firm.
- Examples exclude direct client delivery costs, profit, taxes, and financing costs unless included in overhead.
Related Examples
Frequently Asked Questions
What happens if expected billable hours fall?
The hourly overhead cost rises if annual overhead stays unchanged, because the same cost total is spread over fewer invoiced hours.
Can a firm use the calculation for a remote practice?
Yes. Enter relevant remote-working costs, such as software, home-office allowances where applicable, IT support, insurance, and administration.
Should a firm calculate one rate for all service lines?
This calculator gives a firm-wide baseline. A practice may also use separate internal analyses where service lines have materially different costs or billable capacity.
Can the figures be entered in any currency?
Yes, provided every cost is entered in the same currency. The calculator preserves that currency in the result.
Ready to calculate your own result?
Use the live calculator with your own inputs, timing, and preferences.