The ongoing costs of running a business that aren't tied to a specific project, such as rent, software, insurance, and subscriptions.
Overhead is the ongoing cost of simply being in business, separate from any single project — software subscriptions, insurance, your phone, accounting, a coworking desk. Whether you land one client this month or ten, overhead shows up.
For sellers, overhead is the number people forget when setting rates. If your overhead is $2,000 a month, every dollar you charge has to cover that before it becomes income — which is why “I just want to make $60,000” usually requires billing far more than $60,000. Knowing your overhead is step one in pricing that actually works; our freelance rate calculator builds it in. For buyers, overhead is part of why a freelancer’s rate is higher than an employee’s wage — they carry costs an employer would otherwise absorb.
The discipline is reviewing overhead regularly. Subscriptions creep, “just $15 a month” tools accumulate, and a reconciliation habit catches the ones you stopped using. Lower overhead directly widens your profit margin without earning a dollar more.