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.
Result
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.
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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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