Accounting · Free tool
Cost Allocation Calculator
Shared costs such as rent, IT, or a head office team often have to be split across departments, product lines, or group entities. This cost allocation calculator takes a cost pool and a percentage for each line, checks that the percentages add up to 100, and returns the amount each line carries. It suits controllers, FP&A teams, and group accountants.
- OutputAn amount for each line
- No sign-up
- Copy or print the result
- How it works ↓
Your entries stay in this browser. Use Fill example to see a finished page first.
What this accounting tool gives you
The result shows the pool and the number of lines, then a table with each line's percent and allocated amount. The table can go straight into a management pack or an intercompany recharge schedule, and it makes the split easy to explain to budget holders.
What you enter
- Currency: USD by default, or EUR or GBP (only changes how amounts are formatted)
- Cost pool: the total cost to allocate, zero or more
- Line: the name of each department, product, or entity receiving a share
- Percent: that line's share of the pool; all percents must add up to 100
Worked example
The tool's example allocates a $10,000 cost pool between two lines. Product takes 60% and Services takes 40%. Product carries $10,000 × 60% = $6,000, and Services carries $10,000 × 40% = $4,000. The two amounts add back to the full $10,000 pool.
How is a cost pool allocated?
Each line's amount = cost pool × that line's percent ÷ 100, rounded to the cent. The percents must add up to 100, within 0.05 of a percent; if they do not, the tool shows the current total and asks you to fix it rather than scaling the shares.
Every line needs a name and a percent, and percents cannot be negative. The tool does not choose an allocation basis for you: whether the percentages come from headcount, floor space, revenue, or usage is your decision, made before you enter them.
Tips before you use the result
- Document the basis behind each percent, such as headcount or square footage, so budget holders can see why they carry their share.
- Recalculate the percentages when the basis changes, for example after a hiring round or an office move.
- With odd percentages, rounded amounts may miss the pool by a cent; adjust the largest line so the total ties out.
- Keep the same allocation method across periods so department results stay comparable.
Frequently asked questions
What is cost allocation?
Cost allocation is the process of assigning shared or indirect costs, such as rent, utilities, or central services, to the departments, products, or entities that benefit from them. This calculator handles the arithmetic step: you choose the percentages, and it splits the pool into an amount for each line.
How do I choose the percentages for each line?
Pick a basis that reflects how the cost is consumed: headcount for HR costs, floor space for rent, usage for IT, or revenue when nothing better exists. Convert each line's share of that basis into a percent and enter it here. The tool checks that the percents total 100.
What happens if my percentages do not add up to 100?
The calculator stops and tells you the current total, for example 95 or 102, instead of allocating the pool. It does not scale the percentages automatically, because that would hide a mistake in the basis. Adjust the lines until they total 100, and the amounts appear.
Is my allocation stored anywhere?
Just in your browser. The pool and lines are saved to local storage on your device, which lets you return to the same split later, and you can use the tool without any sign-up. Nothing is sent to a server.
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