Accountants Overhead Cost (Monthly) Calculator Examples
Worked examples showing how accounting practices can estimate monthly overhead, revenue targets, and average billing rates.
These examples show how different cost structures, billable-hour levels, and profit-margin targets affect an accounting practice's monthly revenue requirement. They are planning illustrations rather than pricing recommendations.
Solo accountant working remotely
A sole practitioner expects 90 billable hours and wants a 15% profit margin.
Input Summary
Staff costs
$3,000 per month
Office and utilities
$400 per month
Software and subscriptions
$500 per month
Insurance and professional costs
$350 per month
Marketing and other costs
$750 per month
Billable hours
90 hours per month
Target profit margin
15%
Calculation Breakdown
- 1Monthly overhead3000 + 400 + 500 + 350 + 750$5,000
- 2Overhead per billable hour5000 / 90$55.56 per hour
- 3Revenue target5000 / (1 - 15 / 100)$5,882.35
- 4Average hourly revenue target5882.35 / 90$65.36 per hour
Result Summary
Average hourly revenue target
$65.36 per hour
Accountants Overhead Cost (Monthly) Calculator
The practice needs about $5,882 monthly revenue to cover $5,000 of overhead and retain a 15% margin.
Growing small accounting firm
A small firm expects 300 billable hours and targets a 20% profit margin.
Input Summary
Staff costs
$12,000 per month
Office and utilities
$2,500 per month
Software and subscriptions
$1,200 per month
Insurance and professional costs
$800 per month
Marketing and other costs
$1,500 per month
Billable hours
300 hours per month
Target profit margin
20%
Calculation Breakdown
- 1Monthly overhead12000 + 2500 + 1200 + 800 + 1500$18,000
- 2Overhead per billable hour18000 / 300$60.00 per hour
- 3Revenue target18000 / (1 - 20 / 100)$22,500
- 4Average hourly revenue target22500 / 300$75.00 per hour
Result Summary
Average hourly revenue target
$75.00 per hour
Accountants Overhead Cost (Monthly) Calculator
The firm breaks even at $18,000 monthly revenue and needs $22,500 to target a 20% margin.
Established firm with lower utilization
The firm has $40,000 in monthly overhead but expects only 500 billable hours this month, with a 25% margin target.
Input Summary
Staff costs
$28,000 per month
Office and utilities
$5,000 per month
Software and subscriptions
$2,500 per month
Insurance and professional costs
$1,500 per month
Marketing and other costs
$3,000 per month
Billable hours
500 hours per month
Target profit margin
25%
Calculation Breakdown
- 1Monthly overhead28000 + 5000 + 2500 + 1500 + 3000$40,000
- 2Overhead per billable hour40000 / 500$80.00 per hour
- 3Revenue target40000 / (1 - 25 / 100)$53,333.33
- 4Average hourly revenue target53333.33 / 500$106.67 per hour
Result Summary
Average hourly revenue target
$106.67 per hour
Accountants Overhead Cost (Monthly) Calculator
The practice requires about $53,333 monthly revenue and $106.67 average revenue per billable hour.
Comparison of two billable-hour forecasts
A practice with $18,000 monthly overhead and a 20% margin compares 240 and 360 billable hours.
Input Summary
Monthly overhead
$18,000
Target profit margin
20%
Conservative billable-hours forecast
240 hours
Higher billable-hours forecast
360 hours
Calculation Breakdown
- 1Revenue target in both forecasts18000 / (1 - 20 / 100)$22,500
- 2Conservative overhead per hour18000 / 240$75.00 per hour
- 3Conservative target hourly rate22500 / 240$93.75 per hour
- 4Higher target hourly rate22500 / 360$62.50 per hour
Result Summary
Higher target hourly rate
$62.50 per hour
Accountants Overhead Cost (Monthly) Calculator
For the same $22,500 monthly revenue target, the average required rate ranges from $62.50 to $93.75 per hour depending on billable hours.
How to Read Your Results
Total monthly overhead is the combined recurring cost entered for the month.
Overhead per billable hour shows the cost that each billable hour must recover before profit.
Break-even monthly revenue covers listed overhead only; it does not include a profit allowance.
The revenue target includes the selected profit margin as a percentage of revenue.
The target average hourly rate is a blended revenue measure and can be used alongside fixed-fee or service-line pricing.
Assumptions & Important Notes
- All costs shown in each example are recurring monthly amounts.
- The selected billable hours are combined client-chargeable hours for the practice.
- Profit margin is calculated after the listed overhead but before any unlisted items.
- Examples use rounded currency figures for readability.
Related Examples
Frequently Asked Questions
Can these examples be used for a fixed-fee accounting practice?
Yes. Treat the target hourly rate as an average revenue benchmark, then compare it with expected fixed-fee revenue and delivery hours.
What happens if my actual billable hours are below forecast?
Overhead per billed hour and the average revenue needed per hour both increase if monthly costs remain unchanged.
Do examples include tax or owner drawings?
No. Include recurring costs consistently if you want them reflected, but tax and owner-payment treatment can vary.
Why is the target revenue higher than break-even revenue?
Break-even covers overhead only. Target revenue also leaves the selected share of revenue as profit.
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