Roofing
Roofing Net Profit Calculator
Work out what remains after every cost, with the seasonal shape of roofing accounted for.
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
- Overhead, which runs level while roofing revenue is strongly seasonal.
- Insurance, which for roofing is a substantial fixed cost.
- Owner compensation, treated as a cost rather than as what is left.
Where this one goes wrong
Judging the business on a peak season. Roofing revenue concentrates heavily, and a company that is profitable across summer can spend the rest of the year consuming that profit.
Questions
About this calculator
How should a seasonal year be assessed?
Across the full twelve months, with the off-season losses visible rather than averaged away. The peak months have to carry the quiet ones and the arithmetic should show whether they do.
What are the largest fixed costs?
Usually insurance, vehicles and any year-round staff. All three continue through months when little revenue arrives.
Should storm work be modelled separately?
Yes. It is unpredictable, it distorts a year when it happens, and building a business plan that assumes it is how companies get into trouble in a quiet year.
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.