Williams Air Solutions

Net Profit Calculator

After everything — labor, materials, overhead, your own salary — is your company actually making money?

Revenue

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Total invoiced revenue for the year. Find this on your tax return (gross receipts) or your P&L statement top line. If you do not have a formal P&L, check your accounting software (QuickBooks, Xero) or add up all deposits from jobs over the last 12 months.

How do you want to enter costs?

Entering percentages is faster if you know your cost ratios. Dollar amounts are easier if you just want to add up your monthly bills.

Direct Job Costs (COGS)

COGS (Cost of Goods Sold) is everything you spend directly on jobs. Tech wages, parts, and subcontractors. These costs only exist when you run a job. Target: 40–55% of revenue total.

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All tech wages including taxes and benefits. Typical: 20–30% of revenue.
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Parts, equipment, and supplies purchased for jobs. Lower for service (10%), higher for installs (20%+).
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Electrical, duct fabrication, crane services. Enter 0 if you do not subcontract.
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Permits, refrigerant disposal fees, and other job-specific costs.

Overhead / Operating Expenses

Overhead is everything you pay whether you run jobs or not. Rent, office staff, insurance, marketing, and fleet. These are the costs that make busy contractors broke when they are not controlled. Target: 25–35% of revenue total.

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Target: 7–10%
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Owner Compensation

Separate your pay from company profit. Most owners take a draw and call whatever is left "profit." This calculator separates the two so you can see if the business is profitable independent of what you pay yourself.

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Health insurance, retirement match, personal vehicle, and other benefits the company pays for the owner personally.

Enter your annual revenue and owner salary to see your true net profit.

What to do with these results
  1. Separate owner comp from profit. A company that shows $180K "net income" but the owner takes $150K in salary actually earns $30K in true profit. This calculator makes that visible. If the true net is near zero, the owner is getting paid but the business is not building value.
  2. Recognize the "busy but broke" pattern. Revenue of $1M+, gross margin at 45%, overhead at 35%, owner taking $90K, and true net of $10K. The business looks healthy from the outside but generates almost no profit after the owner is paid. Overhead is the usual culprit.
  3. Compare overhead categories to benchmarks. The bar chart shows where your money goes. If marketing is at 12% and the benchmark is 7–10%, that is the lever. If office staff is at 8% and the benchmark is 4–6%, that is the lever. Find the category farthest above benchmark and investigate there first.
  4. Run this quarterly. Monthly is noisy. Annually is too late. Quarterly P&L reviews catch cost drift before it compounds into a full-year problem.

These calculations use HVAC P&L benchmarks from ACCA, Profitability Partners, ServiceTitan, and FieldCamp. They are estimates for planning purposes. Work with your accountant for tax and financial planning decisions.

Related Topics

Financial Dashboard & KPIs Pricing & Cost Accounting Exit Planning & Valuation
Sources (5)
  • ACCA — financial benchmarking study, budget guide
  • Profitability Partners — 200+ P&L review methodology
  • ServiceTitan — P&L framework and margin benchmarks
  • FieldCamp — 2026 cost category benchmarks
  • CEO Finance Academy — HVAC net margin by company size