Understanding Fixed Costs
Fixed costs are regular expenses that help you track your business overhead. This guide explains how the system calculates and displays these costs.
What Are Fixed Costs?
Fixed costs are expenses that occur regularly, like studio rent, software subscriptions, or equipment purchases.
Monthly
Adobe Creative Cloud - $50/month
Yearly
Domain renewal - $15/year
One-time
New laptop - $1,500 (spread over 3 years)
Frequency Types
Choose how often each cost recurs:
One-time
A single payment, optionally spread over time
Example: Equipment purchase
Weekly
Repeats every week
Example: Freelancer assistant
Monthly
Repeats every month
Example: Office rent, subscriptions
Yearly
Repeats every year
Example: Annual licenses
How Costs Are Calculated
The system divides costs into daily amounts, then multiplies by the days in your selected period.
Example
You pay $300/month for rent. For a 15-day report: $300 ÷ 30 days × 15 days = $150
Spreading One-time Costs
For big purchases, set an End Date to spread the cost over time:
Example
Laptop costs $1,500, used for 3 years. Monthly cost: $1,500 ÷ 36 months ≈ $42/month
Ongoing Costs
Leave End Date empty for costs that continue indefinitely. Mark as 'Inactive' when you stop paying.
Tips
- 1Always set the correct start date
- 2For equipment, set an end date matching its lifespan
- 3Mark costs as 'Inactive' instead of deleting them
- 4Check the Fixed Costs Summary to review averages