Overhead Pricing Calculator (Download To Use)

An Overhead Pricing Calculator is a tool designed for manufacturing and fabrication shops—such as custom cabinetry or woodworking businesses—to accurately assign shop overhead and labor costs to individual parts and products.

Instead of applying a flat markup, it breaks down daily operating expenses (labor wages, machine rates, material wastage, and assembly times) and allocates them into two main pricing components:

• Fixed Costs (Per Part): Charges a baseline amount for tasks that take the same effort regardless of size, such as picking, handling, or loading a machine.
• Variable Costs (Per Area): Charges based on part dimensions for tasks that scale with size, such as cutting, machining, or material yield loss.

By balancing these fixed and variable splits across key operations like handling, machining, and assembly, the calculator ensures jobs are priced consistently, accurately recovering shop overhead while maintaining competitive profit margins.