bdevy.

Security & low voltage

Security Profit Calculator

Works gross profit on a security job, where the cabling hours decide it.

Your numbers

$
$
$
$

Result

Gross profit $13,800
Gross margin 32.1%
Total direct cost $29,200
Profit per working day $627.27
That is $13,800 at a 32.1% margin, about $627.27 for every working day. Overhead still has to come out of it.

Gross profit is what is left after the cost of doing the job. Overhead comes out of that: the building, the office wages, the vans, insurance, software and advertising. A healthy gross margin still loses money if overhead is larger.

Get a Free Business Audit

How the calculation works

Revenue less direct costs gives gross profit and margin, with direct costs being equipment, labour and any subcontracted work. On a security installation the equipment cost is known precisely and the labour is the variable, so job profitability is essentially a question of whether the cabling hours came in at estimate. A job where the cable routes turned out difficult loses its margin in hours while the equipment line is unchanged.

What moves the number

  • Actual cabling hours against the estimate.
  • Equipment cost, which is known and fixed.
  • Programming and commissioning time, often underestimated.
  • Return visits for devices that failed commissioning or configuration changes.

Where this one goes wrong

Track actual hours against estimate per job, because this is a trade where the estimate error is systematically in one direction: cable routes are worse than assumed more often than they are better. A business that does not compare estimated to actual hours cannot improve its estimating and will keep absorbing the difference. Return visits are the other quiet loss: a device that was not properly commissioned, or a configuration the customer wants adjusted after they have lived with it, costs a trip that nobody budgeted and that is awkward to bill.

Before you quote

  • Record actual hours against estimate on every job.
  • Budget a commissioning allowance rather than assuming first-time success.
  • Decide in advance how post-handover configuration changes are billed.

Questions

About this calculator

What loses money on a security installation?

Cabling hours. Equipment cost is known precisely, so the margin is made or lost on whether the cable routes came in at estimate, and they are worse than assumed more often than better. A business not tracking estimated against actual hours cannot correct that.

Should commissioning be budgeted separately?

Yes, with an allowance rather than an assumption of first-time success. Devices that do not report correctly, zones labelled wrongly and signal paths that need rework are normal rather than exceptional, and a job priced as though everything works first time absorbs that.

How should post-handover changes be handled?

Decided in advance. Customers who have lived with a system for a fortnight want timings, sensitivities and notifications adjusted, which is a trip nobody budgeted. Including a defined adjustment visit in the price, or charging for it explicitly, is better than absorbing it awkwardly.

How useful was this calculator?

Not rated yet. Yours would be the first.

The formula

gross profit = revenue - direct costs

Put this calculator on your site

Free to embed. Paste this where you want it to appear. It stays up to date automatically because it loads from BDEVY.

Please keep the attribution line. It is the only thing we ask in return.

How to use this calculator

  1. Revenue ($). Enter your own figure; the page starts at $43,000.
  2. Direct labour ($). Enter your own figure; the page starts at $16,000.
  3. Materials and equipment ($). Enter your own figure; the page starts at $11,000.
  4. Other direct costs ($). Enter your own figure; the page starts at $2,200.

The result updates as you type, so you can try a figure, see what it does to gross 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

InputValue
Revenue$43,000
Direct labour$16,000
Materials and equipment$11,000
Other direct costs$2,200

What comes out

ResultValue
Gross profit main result$13,800
Gross margin32.1%
Total direct cost$29,200
Profit per working day$627.27

That is $13,800 at a 32.1% margin, about $627.27 for every working day. Overhead still has to come out of it.

How sensitive the answer is

Holding everything else steady and changing only revenue, this is what happens to gross profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.

Revenue ($)Gross profit
$21,500 -$7,700
$32,250 $3,050
$43,000 example above $13,800
$64,500 $35,300
$86,000 $56,800

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 $43,000.
Direct labour ($)
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.

What the results tell you

ResultWhat it is
Gross profitThe headline result. A money figure.
Gross marginA percentage.
Total direct costA money figure.
Profit per working dayA money figure.

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.