Desk Cost Calculator

Agency overheads are usually reviewed as a single annual figure, which makes them hard to act on. Dividing them by headcount turns them into a cost per desk, and that is the number to set against what each person actually produces.

It also makes hiring decisions concrete. Adding a negotiator costs their salary plus a desk, and the second figure is frequently a third of the first.

The calculation

Add every shared premises and technology cost, divide by the number of desks, then add the software and licences attributable to each person. The result is what one seat costs before any salary.

Worked example

Rent of 36,000, a 9,000 service charge, 12,000 of rates, 4,000 of utilities and 6,000 of shared technology is 67,000 across eight desks — 8,375 each. Adding 1,200 of per-head software brings the desk cost to 9,575 a year, or about 798 a month, and the total overhead to 76,600.

Use it in hiring decisions

A new negotiator costs their package plus a desk. On these figures that is nearly 10,000 before salary, which is the number that should sit alongside the deals they are expected to bring — not the salary alone.

Frequently asked questions