This is a free Productive addon. You have to turn it on to be able to use it.
Go to Settings > Addons and turn on Cost overhead.

What is cost overhead?

It is the amount of money added on top of your employees' cost rates (salaries). When people track time, we will deduct both their cost rate and the overhead amount (per hour) from the billable rate, thus increasing the accuracy of the profitability report even further. 

Productive calculates overheads based on your average facility costs (office space, software, travel expenses, etc.) and on the amount of time you spend on internal projects (like Sales, Finance, HR, etc.)

To set up your facility cost go back to Settings and click on Cost overhead. 

Current Facility Cost

To update the Current Facility cost simply click on Facility cost field and update the following information:

Facility cost is the average amount of money you spend every month on office space, travel expenses, software, etc.

The amortization period is the number of months that will be taken into overhead cost calculation.

The calculation date is the date when the cost will be calculated.

Overview by months

Here is an example of an overhead calculation for the previous 6 months. You can see for the month of November that because of an increase in internal hours the internal cost per hour increased this having an impact on the total overhead per hour.
And vice versa, when those costs in December were removed, the overhead per diminished slightly.

How are costs calculated?

Here is a list of formulas that are used to calculate values from the overview above:

overhead_per_hour = facility_cost_per_hour + internal_cost_per_hour
facility_cost_per_hour = average_facility_costs / estimated_total_hours
internal_cost_per_hour = average_internal_costs / estimated_client_hours
facility_costs = inputed by the user
internal_costs = internal_work_cost + internal_expenses_cost
estimated_total_hours = hours calculated from people cost rates
estimated_client_hours = estimated from internal/cilent ratio of previous months

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