Solar & battery
Solar Installation Profit Calculator
Works profit on an installation, where the electrical work and the surprises decide it.
Result
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 AuditHow the calculation works
Contract price less equipment cost, labour at burdened rates, permitting and interconnection fees, and the overhead allocation, giving profit and margin on the job. Equipment is a large and reasonably predictable share; labour and the items discovered on site are where the margin moves.
What moves the number
- Equipment cost at current prices.
- Labour hours against estimate.
- Permitting, interconnection and inspection fees.
- Work discovered at survey or on site.
Where this one goes wrong
A service panel upgrade, a roof that needs work before an array goes on it, or a structural issue found at survey are the items that consume a job's margin, and the defence is a thorough site survey rather than a contingency in the price. Equipment pricing also moves enough that a quote built on last quarter's costs can be short, so current pricing belongs in every estimate rather than a carried-forward figure.
Before you quote
- Survey thoroughly rather than pricing a contingency.
- Use current equipment pricing in every estimate.
- Track actual labour hours against estimate per job.
Questions
About this calculator
What loses money on a solar install?
Work discovered after the price was set: a service panel upgrade, a roof needing attention before an array goes on it, or a structural issue. A thorough site survey is a better defence than a contingency in the price.
Does equipment pricing matter to margin?
Yes, because it is a large share of the job and prices move. A quote built on last quarter's costs can be short on a job installed this quarter, which is why current pricing belongs in each estimate rather than a carried-forward figure.
How do I improve install margin?
By tracking actual labour hours against estimate per job and finding the pattern. Certain roof types, jurisdictions or job configurations consistently overrun, and the estimate for those has been wrong every time until someone measures it.
The formula
gross profit = revenue - direct costs
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How to use this calculator
- Revenue ($). Enter your own figure; the page starts at $129,000.
- Direct labour ($). 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.
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
| Input | Value |
|---|---|
| Revenue | $129,000 |
| Direct labour | $16,000 |
| Materials and equipment | $11,000 |
| Other direct costs | $2,200 |
What comes out
| Result | Value |
|---|---|
| Gross profit main result | $99,800 |
| Gross margin | 77.4% |
| Total direct cost | $29,200 |
| Profit per working day | $4,536 |
That is $99,800 at a 77.4% margin, about $4,536 for every working day. Overhead still has to come out of it.
How sensitive the answer is
Holding everything else steady and changing only revenue, this is what happens to gross profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue ($) | Gross profit |
|---|---|
| $64,500 | $35,300 |
| $96,750 | $67,550 |
| $129,000 example above | $99,800 |
| $193,500 | $164,300 |
| $258,000 | $228,800 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Revenue ($)
- A money amount, starting at $129,000.
- Direct labour ($)
- 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
| Result | What it is |
|---|---|
| Gross profit | The headline result. A money figure. |
| Gross margin | A percentage. |
| Total direct cost | A money figure. |
| Profit per working day | A money figure. |
A design still needs a site visit
Output and sizing figures use the assumptions you enter, not measured irradiance, shading or roof orientation at your address. Real production depends on all three, plus inverter behaviour and local interconnection rules.
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.