How to Calculate Overhead
- 1). Determine what your monthly average electric and gas bills are. These can be in separate bills or one combined bill. Average the past twelve months together to determine your average monthly gas and electric bill.
- 2). Calculate your average monthly water bill in the same way that you calculated your average monthly gas and electric bills in step one. For utilities it is best to calculate an average over 12 months as the costs fluctuate from month to month.
- 3). Gather your credit card bills for the past year for the credit cards that you owe money on. Add up the total you have paid each month for all of your cards. Divide this number by 12. This will give you your average monthly credit card expense.
- 4). Calculate your known expenses, such as car payments, rent payments, daycare costs, and automobile gas expense for a period of one month. These are your known monthly expenses.
- 5). Set a budget for expenses such as your grocery purchases, and your entertainment costs. These will be your expected monthly budgeted expenses.
- 6). Add together your average monthly gas and electric bills, average monthly water bill, known monthly expenses, your average monthly credit card expense, and your monthly budgeted expenses. This total is your personal or your family's overhead costs that need to be accounted for in your budgeting on a monthly basis when determining your own or your family's monthly budget.
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