A fixed expense is a cost that remains constant and does not change with the level of production or sales activity. Examples of fixed expenses include rent or mortgage payments, car payments, insurance premiums, loan repayments, property taxes, and subscription services. These expenses are predictable and usually paid regularly, such as monthly or yearly. In summary, a fixed expense is one like rent, mortgage, car loan payments, insurance premiums, or other loan payments that remain consistent regardless of business or personal activity levels.
