All non-variable business costs that are not directly tied to producing or marketing a single order.
Formula
Overhead Costs = sum of all entries in the Custom Costs sheet where Category = "Overhead Costs"
Explanation
Overhead Costs (also called SG&A — Selling, General & Administrative costs) include everything that keeps the business running but doesn't scale directly with individual orders: salaries, office rent, software subscriptions, agency retainers, and similar fixed or semi-fixed expenses.
In Klar, Overhead Costs are entered manually via the Custom Costs Google Sheet. Only entries where the Category column is set to "Overhead Costs" are counted here — entries with other categories (e.g. COGS, Logistics Costs, Payment Costs, Marketing Costs) flow into different lines of the margin waterfall. Overhead Costs are deducted from CM3 to arrive at EBITDA. You can break them down further using the Sub-category column: Salary, Rent, Software, Operations, Agency, Other Overhead, and Fixed Marketing Costs.
Notes
Overhead Costs entered in Klar do not replace your accounting records. Their purpose is to give you an operationally accurate P&L view you can use to track profitability trends and set targets.