Calculator
HVAC Profit Margin Calculator
Calculate net profit per hvac job and your monthly business margin — enter ticket price, loaded labor, materials, overhead, and target margin to see gross and net profit with trade-specific benchmarks. Free, no signup.
Free
Additional job costs
$1,800 avg ticket60 jobs/mo15.0% net target
Monthly net profit
$13,350
54.0% gross · 12.4% net · $108,000/mo revenue
Net margin within healthy range
Gross profit per job$973
Per-job economics
Total direct cost
$828Labor + materials + fees per job
Gross profit / job
$97354.0% gross margin
Overhead / job
$750$45,000 ÷ 60 jobs
Net margin
12.4%Healthy HVAC net margin: 10–20%
Cost breakdown per job
- Labor: $123
- Materials: $450
- Commission: $180
- Permits: $75
- Gross profit: $973
Loaded labor rate: $35.00/hr
Monthly P&L
Revenue
$108,00060 jobs × $1,800
Total COGS
$49,650Direct costs across all jobs
Gross profit
$58,35054.0% gross margin
Monthly overhead
$45,000Fixed business costs
Net profit
$13,35012.4% net margin
Breakeven & growth targets
Break even
47
jobs/mo (net = $0)
10% net
57
jobs/mo
15% net
65
jobs/mo
20% net
74
jobs/mo
Volume scenario analysis
| Jobs/mo | Revenue | COGS | Gross | Overhead | Net profit | Net % |
|---|---|---|---|---|---|---|
| 30 | $54,000 | $24,825 | $29,175 | $45,000 | -$15,825 | -29.3% |
| 45 | $81,000 | $37,238 | $43,763 | $45,000 | -$1,238 | -1.5% |
| 60 * | $108,000 | $49,650 | $58,350 | $45,000 | $13,350 | 12.4% |
| 75 | $135,000 | $62,063 | $72,938 | $45,000 | $27,938 | 20.7% |
| 90 | $162,000 | $74,475 | $87,525 | $45,000 | $42,525 | 26.3% |
* Your current monthly volume
Industry benchmarks
- Service/repair gross
- 55–65%
- Install gross
- 40–48%
- Net margin target
- 10–20%
- Sales commission
- 8–13% of ticket
HVAC benchmark: 50–55% gross margin
What you'll get
Price a single job
Enter ticket price, labor hours, burdened rate, materials cost, commission, and overhead allocation to see gross margin, net margin, and profit dollars for one typical job.
Run monthly business economics
Switch to the business view — add monthly revenue, direct costs, overhead, and jobs completed to see shop-level gross and net margin against industry benchmarks.
Compare to trade benchmarks
See how your margins compare to typical hvac service and install ranges, then adjust pricing before you quote the next job.
How it works
- 1
Price a single job
Enter ticket price, labor hours, burdened rate, materials cost, commission, and overhead allocation to see gross margin, net margin, and profit dollars for one typical job.
- 2
Run monthly business economics
Switch to the business view — add monthly revenue, direct costs, overhead, and jobs completed to see shop-level gross and net margin against industry benchmarks.
- 3
Compare to trade benchmarks
See how your margins compare to typical hvac service and install ranges, then adjust pricing before you quote the next job.
Why hvac contractors track profit margin on every job
Revenue is not profit. A $850 hvac service call can net $45 or $280 depending on loaded labor, parts cost, drive time, commission, and overhead recovery. Most shops discover they are underpricing install and over-discounting service because they track revenue — not margin per job.
Industry-standard pricing uses burdened labor (not base wage), materials at wholesale cost, overhead recovery per billable hour or job, and the divisor method for target net margin — not simple markup. This calculator implements both single-job and monthly business views with hvac-specific gross and net margin benchmarks so you can validate flat-rate prices before they hit your P&L.
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View statesProfit Margin Calculator FAQs
What profit margin should a hvac contractor target?
HVAC service work typically needs 55–65% gross margin and 15–25% net after overhead. Install and project work runs lower gross (38–55%) but higher ticket volume. Your market, crew efficiency, and overhead load shift these ranges — use benchmarks as a starting point, not a ceiling.
What is the difference between gross margin and net margin?
Gross margin is (revenue − direct job costs) ÷ revenue — labor, materials, subs, and commission on that job. Net margin subtracts business overhead (rent, office, marketing, non-field payroll) and reflects true shop profitability. A job can look profitable on gross margin and still lose money if overhead is not recovered.
Why use burdened labor rate instead of base wage?
Base wage ignores payroll taxes, workers’ compensation, benefits, and non-billable time. Burdened rate is the true hourly cost of putting a tech on a job — typically 25–35% above base pay. Pricing from base wage is the most common reason contractors underprice service calls.
Is this profit margin calculator free?
Yes. Every tool on CloseCrew is free for contractors — no account required. Pair it with the Labor Rate Calculator and Job Pricing Calculator to build your loaded rate and cost-plus bids.
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