Overhead costs are expenses that aren’t directly tied to ingredients or labor but are necessary to run your cookie business (e.g., electricity, packaging, rent).

Step 1: List Your Overhead Expenses

Common overhead costs for home-based cookie makers:

✅Utilities – Electricity, gas, water (used for baking)

✅Rent/Mortgage – If applicable (home business owners may allocate a portion)

✅Baking Equipment – Mixers, ovens, cookie cutters (spread over time)

✅Packaging & Labels – Boxes, ribbons, stickers

✅Marketing & Website – Hosting, domain name, ads

✅Business Insurance & Permits – If required in your state

✅Delivery Costs – Gas, mileage, or shipping expenses

Step 2: Determine Monthly Overhead Cost

Add up all fixed expenses for the month. If you bought equipment, divide the total cost by its expected lifespan in months.

Example: A $600 mixer lasting 5 years (60 months) = $10/month overhead

Step 3: Divide by Your Estimated Orders

To get the overhead cost per batch, divide total monthly overhead by the number of batches you make.