Calculate your G&A rate as a percentage of the cost base from G&A expenses and direct costs, or solve for G&A expenses or the cost base from a known rate.

General and administrative costs for the period: executive and office salaries, rent, accounting, legal, and similar overhead.

The allocation base for the same period, usually total direct costs (or total cost input).

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G&A Rate Formula

The following formula is used to calculate the G&A Rate.

G&A Rate = (Total G&A Expenses / Total Direct Costs) * 100

Variables:

  • G&A Rate is the General and Administrative expense rate (%)
  • Total G&A Expenses are the total overhead costs not directly tied to the production process ($)
  • Total Direct Costs are the total costs directly associated with producing a product or service ($)

To calculate the G&A Rate, divide the total G&A Expenses by the total Direct Costs. Multiply the result by 100 to convert the rate into a percentage. This will give you the proportion of indirect overhead costs in relation to the direct costs associated with producing a product or service.

What is a G&A Rate?

A G&A rate, or General and Administrative expense rate, is a financial metric used by businesses to determine the proportion of indirect overhead costs in relation to the direct costs associated with producing a product or service. These overhead costs can include salaries, utilities, rent, and other expenses necessary for the overall operation of a business but not directly tied to the production process. The G&A rate is typically expressed as a percentage and is used for budgeting, pricing, and financial analysis purposes.

How to Calculate G&A Rate?

The following steps outline how to calculate the G&A Rate.

  1. First, determine the Total G&A Expenses ($).
  2. Next, determine the Total Direct Costs ($).
  3. Next, use the formula G&A Rate = (Total G&A Expenses / Total Direct Costs) * 100.
  4. Finally, calculate the G&A Rate.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem:

Use the following variables as an example problem to test your knowledge.

Total G&A Expenses ($) = 5000

Total Direct Costs ($) = 25000