Definition: Fixed expenses do not depend on your consumption of a good or service. A fixed expense is a cost that does not change from period to period or that changes only very slightly. Fixed expenses are usually paid on a regular basis, such as week to week, month to month, quarter to quarter or year to year.
Typical household fixed expenses are mortgage or rent payments, car payments, real estate taxes and insurance premiums.
In small business a fixed cost is a regular expense that does not change according to production. Typical small business fixed expenses are charges for internet access, long-term machine rental and insurance.
Also Known As: Fixed Cost
Examples: Although I was away on vacation for 2 weeks last month, I still owed the landlord for a full month's rent.
