Calculator Methodology

By Trade Business Guide Research Desk

Start

Startup cost sums eleven category ranges only when every endpoint is available. Monthly overhead is the stored trade base, plus selected office rent and entered marketing budget. Working capital is monthly overhead times selected months; annual operating cost is monthly overhead times twelve; break-even jobs round up; projected monthly profit subtracts overhead from expected contribution. Tool startup cost multiplies tools plus equipment by one minus the already-owned percentage.

Operate

Monthly expense adds seven expense inputs and multiplies by twelve. Employee true cost multiplies wage by annual hours and one plus the payroll tax percentage, then adds annual benefits and insurance. Service van cost spreads purchase price over useful life in months and adds fuel, insurance, and maintenance. Commercial vehicle cost also adds one-twelfth of annual registration. Insurance cost sums the three monthly premiums and multiplies by twelve. Overhead percentage divides overhead by revenue and multiplies by 100.

Price

Contractor hourly rate adds target income and annual overhead, divides by one minus target profit margin, then divides by billable hours. The electrician version uses the same formula. Labor rate multiplies wage by one plus burden, multiplies by one plus overhead, then divides by one minus profit margin; roofing uses the same formula. Job pricing adds materials, labor, and allocated overhead, then divides by one minus target margin; plumbing and landscaping use the same formula. Pressure washing pricing multiplies area by cost per square foot, then divides by one minus target margin. Markup vs margin multiplies cost by one plus markup, subtracts cost for profit, and divides profit by price for margin.

Profit

Profit margin subtracts cost from revenue and divides profit by revenue; HVAC uses the same formula. Break-even divides fixed monthly cost by ticket times gross margin and rounds jobs up. Revenue goal divides target income plus overhead by gross margin. Jobs needed divides revenue goal by ticket and rounds up.

Percentages are divided by 100 in the formulas. A zero or missing required denominator leaves a result unavailable. The calculator hub links to individual inputs, formulas, and examples.

Last updated: September 24, 2026