Monthly Fixed Costs

Examples of monthly fixed costs

Monthly fixed costs are expenses your business usually pays even when sales are slow. Common examples include rent for a workspace, internet service, software used to manage orders or design products, insurance, bank fees and subscriptions. These costs are important because they affect the amount of gross profit you need before the business can produce net profit. A small business may start with only a few fixed costs, but tracking them from the beginning improves cost management and makes profit planning more realistic. Review this list every month, remove tools you no longer use and add new recurring payments as the business grows.