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HVAC Job Profit Calculator

A job can look great on gross profit and still lose money once overhead and commission come out. Put in one job's price and costs to see what you really kept — gross and net, in dollars and percent — and the price you'd need to hit your target net margin.

Runs in your browser — nothing you type is sent anywhere

Example numbers — replace with yours. The starting values are placeholders so the form isn't empty. They are not industry averages or benchmarks.

The job

Overhead and target

Results

Direct job cost (incl. commission) —
Gross profit —
Gross margin % —
Overhead charged to this job —
Net profit —
Net margin % —
Price needed for your target net margin —
Versus what you charged —

The math

—

Gross profit vs net profit

Gross profit is the price minus the costs that exist only because you ran this job: equipment, parts, labor, permits, and commission. Net profit is what's left after you also cover this job's share of overhead — the rent, office, trucks, and marketing that keep the doors open. Gross profit tells you if the job was priced above its direct cost. Net profit tells you if it actually made the business money.

How it works

  • Labor = hours × loaded labor cost per hour.
  • Commission = price × commission %.
  • Direct cost = parts + labor + permits/other + commission.
  • Gross profit = price − direct cost. Gross margin = gross profit ÷ price.
  • Overhead = hours × overhead per billable hour, or price × overhead % of sales.
  • Net profit = gross profit − overhead. Net margin = net profit ÷ price.
  • Target price = fixed costs ÷ (1 − commission % − overhead % − target net %). Commission (and overhead, if you use % of sales) grow with the price, so they come off the top. Dividing is what makes the margin come out right; adding a percentage on top of cost does not.

Two worked examples

Overhead per hour (the example numbers above): $1,200 price, $350 parts, 4 hours × $45 = $180 labor, $50 permit, 5% commission = $60. Direct cost = $640, so gross profit is $560 (46.7%). Overhead = 4 × $60 = $240, so net profit is $320 (26.7%). For a 15% net margin: ($350 + $180 + $50 + $240) ÷ (1 − 5% − 15%) = $820 ÷ 0.80 = $1,025.

Overhead as % of sales: $500 price, $100 parts, 2 hours × $40 = $80 labor, no permit or commission. Direct cost = $180, gross profit $320 (64%). Overhead at 30% of sales = $150, so net profit is $170 (34%). For a 20% net margin: $180 ÷ (1 − 30% − 20%) = $180 ÷ 0.50 = $360.

Things this leaves out

  • Callbacks and warranty. A return trip costs labor and parts you won't bill.
  • Financing and card fees. If they come out of the price, add them to other direct costs.
  • Sales tax. Enter the price before tax.
  • Your own pay. If you don't pay yourself a wage through payroll, your net profit is also your paycheck.

We don't quote typical HVAC gross or net margins here because we haven't found a solid public source for them. That's what the anonymous Owner Numbers survey collects, so owners can compare against real peers.

Related tools

Need your overhead per billable hour or loaded labor cost? The HVAC break-even hourly rate calculator works both out from your yearly numbers. Pricing a job before you run it? The HVAC flat-rate price calculator turns parts and labor hours into a price. To convert between markup and margin on any job cost, use the HVAC markup vs margin calculator. Offering financing on installs? The HVAC financing payment calculator shows the monthly payment on each option and what the dealer fee takes from your side. Pricing a replacement before you sell it? The HVAC install job pricing calculator works forward from equipment, crew labor, and subs to the price that hits your target net profit.