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HVAC

HVAC Job Costing Calculator

What a service call actually costs once the drive, the burdened hour and the parts are all counted, and what it earned per hour you were on site.

Your numbers

$
Sales tax is collected for the state, not earned. Leave it out.
$
Wage plus payroll tax, workers' comp, insurance and paid time off, not the bare wage.
$
What you paid, not what you charged.
$
Fuel, maintenance, insurance and depreciation spread over billable hours.
$

Result

Gross profit $421.25
Gross margin 68.16%
Equivalent markup 214.10%
Gross profit per on-site hour $210.63
This call cost $196.75 to deliver and earned $421.25, a 68.16% gross margin, the same job as a 214.10% markup. The drive accounted for 21.73% of the cost.

Gross profit here is before overhead: rent, office wages, advertising, software and the owner's salary all still come out of it. A job at a healthy gross margin can still be unprofitable once its share of running the company is taken. The burdened rate is the number most contractors understate: costing a $28/hour technician at $28/hour ignores payroll tax, insurance and non-billable time, and understates a long job badly.

Open the HVAC invoicing demo

Questions

About this calculator

Should drive time be counted as a job cost?

Yes. The technician is paid for it and the van is running during it, so it is a cost of delivering that job whether or not the customer is charged for it. Leaving it out is what makes a short call across town look more profitable than it was.

What is a burdened labour rate?

The full hourly cost of having a technician on site: wage, employer payroll taxes, workers' compensation, liability insurance, paid time off and any benefits, divided across the hours they are actually billable rather than the hours they are paid. It is usually well above the wage.

Is gross margin the same as profit?

No. Gross margin is what is left after the direct costs of the job. Net profit is what is left after overhead as well. A company can run a 55% gross margin and still lose money if overhead is bigger than the gross profit it generates.

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Job costing that runs on every invoice, not one at a time

The BDEVY invoicing demo carries cost and price on every line, so the margin on a job is visible while it is being built and reportable across the whole book afterwards.