Fixed costs, also referred to as indirect costs or overhead costs in accounting and economics, are corporate expenses that aren't affected by the volume of products or services supplied by an organization. Such expenses are usually recurring, such as monthly interest or rent. They are usually capital expenses. On the other hand, variable expenses are volume-related (and paid for each unit produced) and undetermined at the beginning of the fiscal year. Fixed costs change the nature of some variable expenditures.

Fixed costs are an expense that is not affected by how much work or resources are needed to complete a project. This is in contrast to variable costs which are expenses that vary with the amount of goods or services produced. As such, fixed costs can be seen as a way for companies to control their budgets and avoid overspending.

Fixed costs refer to the expenses that remain constant within a specific period, regardless of the level of production or sales. These costs do not fluctuate with changes in the quantity of goods or services produced by a business. Examples of fixed costs include rent, salaries of permanent staff, insurance premiums, and certain administrative expenses. Unlike variable costs, which vary with production levels, fixed costs are incurred even if a business produces nothing. Understanding fixed costs is crucial for businesses to determine their break-even point—the level of production or sales at which total revenue equals total costs. Managing fixed costs effectively is essential for financial planning and profitability analysis, as they form a foundational aspect of a business's cost structure. Businesses often strategize to minimize fixed costs relative to their revenue to improve overall financial performance and sustainability.