Tutoring service Overhead per Sale
Overhead allocation = fixed costs / completed sales
Gather attendance records, teaching schedules and room costs. Include teacher time, preparation, and scheduling. The starting figures are examples. Replace them with your own records.
Formula and worked example
Overhead allocation = fixed costs / completed sales
| Input | Example |
|---|---|
| Monthly fixed costs | 6,000 |
| Completed lessons per month | 60 |
| Calculated result | 100 per sale |
Choose reliable inputs
Connect teaching time, preparation, attendance and room capacity to each lesson or class. For this tutoring service calculation, use attendance records, teaching schedules and room costs and a consistent definition of one lesson.
- Teacher time: include the portion belonging to this lesson or reporting period, and record where the value came from.
- Preparation: include the portion belonging to this lesson or reporting period, and record where the value came from.
- Scheduling: include the portion belonging to this lesson or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
What happens when monthly volume falls?
Fixed cost per sale rises when completed volume falls. Test a conservative volume scenario before setting prices.
This simple equal allocation does not capture differences in job duration or resource use.
What if this input changes?
If monthly fixed costs rises by 10%, this example changes by 10 per sale. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.