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adjective

overhead

/ˈoʊvərˌhɛd/  ·  say it: OH·vur·hed

ongoing business costs not tied to a specific product

In Business & Marketing

In more detail

1. (adjective) located above your head; at or near the ceiling

2. (adjective) included in the total cost of running a business (such as rent, electricity, and salaries)

3. (adverb) above your head; in the space above

4. (noun) the costs of running a business that are not directly related to producing goods or services

Examples

How to use overhead

As an adjective or adverb, overhead refers to physical location above the head or at ceiling level. As a noun or adjective in business contexts, it means recurring expenses needed to operate a business that cannot be directly attributed to production (rent, utilities, administration). The term is commonly used in both everyday and technical business language.

Common phrases

Synonyms

above · aloft · upstairs · operating costs · running costs

Word family

overhead (adj/adv/noun) · overheads (noun, plural)

A common mistake

Learners sometimes confuse overhead (general business expenses) with direct costs or production costs, forgetting that overhead specifically excludes the costs of materials and labor directly tied to making products.

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