Roofing
Roofing Business Profit Calculator
Model the roofing business across a year: revenue by type, crew costs, overhead and what remains.
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
- Crew count and the days each can actually work after weather.
- Mix between replacement, repair and any commercial work.
- Overhead including insurance, which is a large fixed line in this trade.
Where this one goes wrong
Planning growth on crew count without planning for weather. Adding a crew adds cost immediately and adds revenue only on the days they can work, which in some seasons is a minority of them.
Questions
About this calculator
What limits a roofing business?
Crew days that are actually workable, which is weather plus capacity rather than capacity alone. That is why the same crew count produces very different revenue in different regions.
Is repair work worth doing?
It fills days that are not suitable for a full replacement and it maintains customer relationships. Whether it pays depends on travel and on pricing it properly for a short visit.
Should commercial and residential be separated?
Yes. Payment terms, margin, sales cycle and crew skills all differ, and blending them conceals which one is carrying the business.
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 $88,000.
- Direct labour ($). 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 $18,000.
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 | $88,000 |
| Direct labour | $16,000 |
| Materials and equipment | $11,000 |
| Other direct costs | $2,200 |
| Overhead | $18,000 |
What comes out
| Result | Value |
|---|---|
| Net profit main result | $40,800 |
| Net margin | 46.4% |
| Total direct cost | $29,200 |
| Profit per working day | $1,855 |
That is $40,800 at a 46.4% margin, about $1,855 for every working day.
How sensitive the answer is
Holding everything else steady and changing only revenue, this is what happens to net profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue ($) | Net profit |
|---|---|
| $44,000 | -$3,200 |
| $66,000 | $18,800 |
| $88,000 example above | $40,800 |
| $132,000 | $84,800 |
| $176,000 | $128,800 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Revenue ($)
- A money amount, starting at $88,000.
- Direct labour ($)
- 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 $18,000.
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. |
What this cannot see
Material quantities assume a clean rectangular plane and the waste factor you enter. Valleys, hips, dormers, penetrations and a steep pitch all raise real waste, and a tear-off frequently uncovers decking that was not in the quote.
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.