Electrical
Electrical Recurring Revenue Calculator
Review the economics of an electrical agreement book, including retention and separately assumed work beyond the annual fee.
Result
Agreements often earn little on the fee alone. They are worth having for the access, the retention and the work members buy without shopping around, so judging them on the fee margin alone undervalues them.
Get a Free Business AuditWhat moves the number
- Active paying agreements establish the current book.
- The difference between fee and delivery cost determines recurring-service contribution.
- Renewal and additional-work assumptions describe separate future opportunities.
Where this one goes wrong
An annual recurring total is not the same as cash arriving evenly each month. Renewal clustering, cancellations and visit commitments affect both funding and capacity. Keep fee revenue distinct from optional repairs when describing how predictable the book is.
Questions
About this calculator
Does the model include new agreements next year?
It shows retained members from the entered book. New sales and their acquisition costs need a separate forecast before projecting net growth.
Should optional repairs be called recurring revenue?
Keep them separately identified. They may follow a relationship, but their timing and authorization differ from the contracted annual fee.
How do I test a retention improvement?
Change the renewal assumption and assess the members retained, then consider what delivering that improvement costs. Additional reminders or service visits are not free merely because the model has no separate field for them.
The formula
recurring revenue = members x annual fee; total profit adds the margin on pull-through work
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Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Agreements in force. Enter your own figure; the page starts at 180.
- Annual fee ($). Enter your own figure; the page starts at $0.
- Cost to deliver one ($). Enter your own figure; the page starts at $0.
- Renewal rate (%). Enter your own figure; the page starts at 76%.
- Extra work per member per year ($). Repairs and replacements members buy because you are already there.
- Margin on that work (%). Enter your own figure; the page starts at 47%.
The result updates as you type, so you can try a figure, see what it does to recurring revenue, 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 |
|---|---|
| Agreements in force | 180 |
| Annual fee | $0 |
| Cost to deliver one | $0 |
| Renewal rate | 76% |
| Extra work per member per year | $190 |
| Margin on that work | 47% |
What comes out
| Result | Value |
|---|---|
| Recurring revenue main result | $0 |
| Profit on the agreements | $0 |
| Profit on pull-through work | $16,074 |
| Total gross profit | $16,074 |
| Members still there next year | 137 |
$0 of recurring revenue, earning $0 on the agreements themselves and $16,074 on the work members bring back. The second number is usually the reason to sell them.
What each figure means
- Agreements in force
- A number, between 0 and 100000, starting at 180.
- Annual fee ($)
- A money amount, starting at $0.
- Cost to deliver one ($)
- A money amount, starting at $0.
- Renewal rate (%)
- A percentage, between 0 and 100, starting at 76%.
- Extra work per member per year ($)
- Repairs and replacements members buy because you are already there.
- Margin on that work (%)
- A percentage, between 0 and 95, starting at 47%.
What the results tell you
| Result | What it is |
|---|---|
| Recurring revenue | The headline result. A money figure. |
| Profit on the agreements | A money figure. |
| Profit on pull-through work | A money figure. |
| Total gross profit | A money figure. |
| Members still there next year | A number. |
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.