HVAC
HVAC Revenue Per Tech Calculator
Work out revenue per technician and what it implies about capacity and pricing.
Result
An average hides a lot. One strong performer and one struggling one produce the same average as two mediocre ones, and the management action is completely different.
Get a Free Business AuditWhat moves the number
- Billable hours per technician, which varies more than hourly rate does.
- Average ticket on the work they are sent to.
- Job mix across the team.
Where this one goes wrong
Comparing your figure against an industry benchmark without matching the definition. Whether installers are included, whether it is gross or net of tax, and what counts as a technician all change the number substantially.
Questions
About this calculator
What is a good revenue per technician figure?
It depends entirely on mix and market. An install-heavy company and a service-only company will differ by a wide margin, and neither is doing better than the other.
Does it tell me when to hire?
Partly. If revenue per technician is rising while call volume is being turned away, capacity is the constraint. If it is flat with spare capacity, hiring adds cost without revenue.
Should installers be counted?
Separately, because install revenue per head and service revenue per head are not comparable. Blending them makes the figure move with mix.
The formula
revenue per unit = revenue / number of units; contribution = gross profit - cost of the unit
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How to use this calculator
- Number of techs. Enter your own figure; the page starts at 4.
- Revenue per month ($). Enter your own figure; the page starts at $48,000.
- Cost of one tech per month ($). Wages with burden, vehicle, tools, phone.
- Gross margin (%). Enter your own figure; the page starts at 48%.
The result updates as you type, so you can try a figure, see what it does to revenue per tech, 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 |
|---|---|
| Number of techs | 4 |
| Revenue per month | $48,000 |
| Cost of one tech per month | $7,200 |
| Gross margin | 48% |
What comes out
| Result | Value |
|---|---|
| Revenue per tech main result | $12,000 |
| Per tech per year | $144,000 |
| Gross profit each tech generates | $5,760 |
| Contribution after their own cost | -$1,440 |
Each tech brings in $12,000 a month and contributes -$1,440 after covering their own cost. Anything below zero there means adding people makes things worse, not better.
How sensitive the answer is
Holding everything else steady and changing only revenue per month, this is what happens to revenue per tech. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue per month ($) | Revenue per tech |
|---|---|
| $24,000 | $6,000 |
| $36,000 | $9,000 |
| $48,000 example above | $12,000 |
| $72,000 | $18,000 |
| $96,000 | $24,000 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Number of techs
- A number, between 0 and 2000, starting at 4.
- Revenue per month ($)
- A money amount, starting at $48,000.
- Cost of one tech per month ($)
- Wages with burden, vehicle, tools, phone.
- Gross margin (%)
- A percentage, between 0 and 95, starting at 48%.
What the results tell you
| Result | What it is |
|---|---|
| Revenue per tech | The headline result. A money figure. |
| Per tech per year | A money figure. |
| Gross profit each tech generates | A money figure. |
| Contribution after their own cost | 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.