HVAC
HVAC Business Profit Calculator
Model the whole business across a period: revenue by type, direct costs, overhead and what is left.
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
- Revenue mix between service, maintenance, repair and installation.
- Technician count and what each one can actually produce.
- Overhead, which grows in steps rather than smoothly.
Where this one goes wrong
Growing revenue through installation without watching margin. Installation raises the top line quickly and carries thinner margins and more risk than service work, so a bigger company can be a less profitable one.
Questions
About this calculator
Which revenue type is most profitable?
Usually service and maintenance by margin, installation by volume. The right mix depends on your capacity and market, but knowing your own split by margin is the starting point.
When does overhead step up?
At the points where you add premises, a dispatcher, a salesperson or a vehicle. Those are step changes rather than gradual, and growth plans should anticipate them.
How do I compare this year with last?
On the same definitions, with seasonality accounted for. Month against the same month last year is more informative than month against last month.
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 $48,000.
- Direct labour ($). 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 $15,500.
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 | $48,000 |
| Direct labour | $16,000 |
| Materials and equipment | $11,000 |
| Other direct costs | $2,200 |
| Overhead | $15,500 |
What comes out
| Result | Value |
|---|---|
| Net profit main result | $3,300 |
| Net margin | 6.9% |
| Total direct cost | $29,200 |
| Profit per working day | $150 |
That is $3,300 at a 6.9% margin, about $150 for every working day.
How sensitive the answer is
Holding everything else steady and changing only revenue, this is what happens to net profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue ($) | Net profit |
|---|---|
| $24,000 | -$20,700 |
| $36,000 | -$8,700 |
| $48,000 example above | $3,300 |
| $72,000 | $27,300 |
| $96,000 | $51,300 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Revenue ($)
- A money amount, starting at $48,000.
- Direct labour ($)
- 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 $15,500.
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
Sizing, capacity and load figures here are planning estimates. A real installation depends on the manufacturer's data for the specific equipment, the duct system it is going into, and a proper load calculation for the building. Use this to sanity-check a number or price a job, not to select equipment.
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.