Electrical
Electrical Business Profit Calculator
Review the combined operating result of an electrical business after direct delivery costs and company overhead.
Result
Net profit here is before tax and before any owner's draw that is not already inside overhead. If you pay yourself out of what is left, this figure is your wage rather than the company's profit.
Get a Free Business AuditWhat moves the number
- Use one consistent accounting period for revenue and expenses.
- Include both service and project work in the company-level totals.
- Separate costs charged directly to jobs from costs already collected in overhead.
Where this one goes wrong
Subcontract-heavy installation revenue can make the business look larger without producing more retained profit. Compare the cost mix as well as the total. An increase in revenue is useful only when the associated delivery and company costs are understood.
Questions
About this calculator
How does this differ from a job-profit check?
It covers the company across a period, including support capacity between jobs. A profitable quote does not establish that the overall workload pays for the business.
Where should the owner's work be counted?
Include an appropriate operating cost for work performed if that is part of your management view. Document the treatment so the result does not silently substitute unpaid owner labour for profit.
Does positive profit mean cash is available?
Not necessarily. Uncollected invoices and purchases paid before billing can create a funding gap even when the period shows a surplus.
The formula
net profit = revenue - direct costs - overhead
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How to use this calculator
- Revenue ($). Enter your own figure; the page starts at $34,500.
- Direct labour ($). Enter your own figure; the page starts at $16,000.
- Materials and equipment ($). Enter your own figure; the page starts at $11,000.
- Other direct costs ($). Enter your own figure; the page starts at $2,200.
- Overhead ($). Enter your own figure; the page starts at $11,000.
The result updates as you type, so you can try a figure, see what it does to net profit, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Revenue | $34,500 |
| Direct labour | $16,000 |
| Materials and equipment | $11,000 |
| Other direct costs | $2,200 |
| Overhead | $11,000 |
What comes out
| Result | Value |
|---|---|
| Net profit main result | -$5,700 |
| Net margin | -16.5% |
| Total direct cost | $29,200 |
| Profit per working day | -$259.09 |
That is -$5,700 at a -16.5% margin, about -$259.09 for every working day.
How sensitive the answer is
Holding everything else steady and changing only revenue, this is what happens to net profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue ($) | Net profit |
|---|---|
| $17,250 | -$22,950 |
| $25,875 | -$14,325 |
| $34,500 example above | -$5,700 |
| $51,750 | $11,550 |
| $69,000 | $28,800 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Revenue ($)
- A money amount, starting at $34,500.
- Direct labour ($)
- A money amount, starting at $16,000.
- Materials and equipment ($)
- A money amount, starting at $11,000.
- Other direct costs ($)
- A money amount, starting at $2,200.
- Overhead ($)
- A money amount, starting at $11,000.
What the results tell you
| Result | What it is |
|---|---|
| Net profit | The headline result. A money figure. |
| Net margin | A percentage. |
| Total direct cost | A money figure. |
| Profit per working day | A money figure. |
Before you rely on this number
Conductor sizing, voltage drop and load figures are governed by code, and the code takes precedence over any calculator. Ambient temperature, conduit fill, continuous load factors and the specific installation all change the answer. Treat this as a first pass, not a design.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.