HVAC
HVAC Maintenance Revenue Calculator
Project maintenance revenue from plan members, visit frequency and the repair work those visits generate.
Result
Service lines rarely carry the same margin. Splitting them is the only way to see which part of the business is paying for the rest, which is frequently not the part that looks busiest.
Get a Free Business AuditWhat moves the number
- Member count and the fee, which is the predictable base.
- Pull-through work found during visits, which is usually larger than the fee.
- Renewal rate, since the value compounds across years.
Where this one goes wrong
Modelling the fee alone. The fee rarely justifies the plan on its own; the found work does, and a model that ignores it will conclude plans are not worth selling.
Questions
About this calculator
How much pull-through should a visit generate?
It varies with equipment age and inspection quality, so measure your own. The useful comparison is member spend against comparable non-member spend.
Does the plan fee need to be profitable alone?
Not necessarily, but you should know whether it is. Running it at break-even to generate repair work is a valid strategy only when it is a deliberate one.
What is the value of predictability?
Scheduled work fills quiet weeks and raises utilisation, which is worth real money in a seasonal trade even before the pull-through is counted.
The formula
revenue = jobs x average value; gross profit = revenue x margin
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How to use this calculator
- Maintenance jobs per month. Enter your own figure; the page starts at 60.
- Average value ($). Enter your own figure; the page starts at $180.
- Gross margin on this work (%). Enter your own figure; the page starts at 55%.
- Share of total revenue (%). Used to show what the whole business turns over.
The result updates as you type, so you can try a figure, see what it does to maintenance revenue per month, 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 |
|---|---|
| Maintenance jobs per month | 60 |
| Average value | $180 |
| Gross margin on this work | 55% |
| Share of total revenue | 40% |
What comes out
| Result | Value |
|---|---|
| Maintenance revenue per month main result | $10,800 |
| Per year | $129,600 |
| Gross profit per year | $71,280 |
| Implied total business revenue | $324,000 |
The maintenance line brings in $129,600 a year and earns $71,280 of gross profit on it.
How sensitive the answer is
Holding everything else steady and changing only average value, this is what happens to maintenance revenue per month. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average value ($) | Maintenance revenue per month |
|---|---|
| $90 | $5,400 |
| $135 | $8,100 |
| $180 example above | $10,800 |
| $270 | $16,200 |
| $360 | $21,600 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Maintenance jobs per month
- A number, between 0 and 10000, starting at 60.
- Average value ($)
- A money amount, starting at $180.
- Gross margin on this work (%)
- A percentage, between 0 and 95, starting at 55%.
- Share of total revenue (%)
- Used to show what the whole business turns over.
What the results tell you
| Result | What it is |
|---|---|
| Maintenance revenue per month | The headline result. A money figure. |
| Per year | A money figure. |
| Gross profit per year | A money figure. |
| Implied total business revenue | 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.