Business Economics

Management Overhead Introduced by Growth

See exactly what a new management hire adds to your overhead per billable hour, and how adding crew capacity at the same time dilutes that impact.

New management annual cost$ / yearCurrent overhead per hour$ / hour, from Overhead AllocationCurrent billable hourshours / year, whole businessAdditional hours from growthhours / year, e.g. from a new crew added at the same time

New total overhead per hour$39.06 / hour

Added by this hire$20.31 / hour

Increase over current108.3%

Shared fields save automatically as you edit them. Review or edit everything in one place in your Business Profile, so every engine starts pre-filled.

Methodology

Formula: new overhead per hour from this hire = new management annual cost / (current billable hours + any additional billable hours from growth). New total overhead per hour = current overhead per hour + that figure.

Assumption: this shows the delta a new hire adds on top of your existing overhead-per-hour figure, it does not re-run Overhead Allocation & Break-Even Revenue itself.

Limitation: re-run Overhead Allocation directly once the hire is finalized to update the canonical overhead-per-hour number every other engine uses.