What does overhead mean?
Overhead is a compact and versatile word that connects practical cost with ordinary ideas of height. Its most familiar business sense names the regular expenses involved in running a company or institution, including rent, utilities, administration, and other costs not tied to one particular product or service. Such expenses are often discussed in the plural as “overheads,” and they can affect an organization's viability even when individual items appear modest. Spatially, overhead describes something above a person or object, as with overhead lights, beams, or cables; as an adverb, it can mean “above one's head” or “in the air.” The word can also suggest something unusually obstructive or elevated. In motor racing, an “overhead” is an attempt to pass by taking the outside line. Together, these uses show overhead shifting easily between material costs, physical elevation, and figurative descriptions of burdens or position.
The general costs of running a business or institution, especially recurring costs not directly attributable to a particular product or service.
"The charity depends on donations to cover its overheads."
Often plural in the business sense; the singular can refer to overhead expense as a general category.
Situated above a person, object, or occupied level; relating to something positioned overhead.
"An overhead beam made it difficult for the workers to reach the upper windows."
Common in attributive constructions such as “overhead lighting,” “overhead costs,” and “overhead wires.”
At or above head height, in the air, or across the upper part of a space.
"Birds circled overhead while the concert continued."
In motor racing, “going overhead” means attempting to pass by taking the outside line.
The plural is especially common for the regular running costs of a business or institution.
"The publishers reduced their overheads by consolidating several offices."
The same compound that means the bills of keeping a business running can also mean literally above your head.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does overhead come from?
Overhead is an English compound formed from “over” and “head,” both of which have Germanic origins. Its earliest literal sense referred to being or being placed above the head, and the word was later extended to other spatial uses. By the nineteenth century, it had acquired the now-familiar business sense of general running expenses. Its related vocabulary includes compounds formed with “over,” such as “overcoat” and “overcome,” and words based on “head,” such as “headline” and “headstrong.”
Related word forms
How overhead is actually used
The business sense is often pluralized as “overheads,” especially for recurring running costs. The adjective is commonly pronounced with initial stress in American English, while the adverb and general noun are commonly pronounced with stress on the final syllable. The motor-racing sense, associated especially with British and Irish usage, refers to an outside pass. The antonyms are chiefly applicable to the spatial senses rather than to business costs.