Is your business keeping what it should? Profit Gap Calculator
Compare your rough owner benefit against a directional benchmark for your industry and type of work. Answer from memory — no spreadsheets, no accountant needed.
How it works
Estimate first. Verify next.
Frequently asked questions
What is a good profit margin for a contractor?
It depends on the type of work. Residential service typically benchmarks 12–25% owner benefit, while commercial project work runs 3–10%. This calculator weights the benchmark to your specific industry and work mix.
How do I calculate my real profit as a business owner?
Add your salary, draws, distributions, bonus, vehicle, retirement, health insurance, and owner perks. Then add the profit left after paying yourself. That total is your rough owner benefit — the number this calculator benchmarks against.
Why is my business busy but not profitable?
Common causes include work-type mix (project work hiding behind service margins), material recovery gaps, labor not being billed at full rate, overhead creep, and owner compensation not being tracked as a real cost. This calculator helps size the gap; a Business Checkup finds the cause.
What should an HVAC company owner make?
For a well-run HVAC business, total owner benefit (salary + profit + perks) typically runs 10–25% of revenue depending on work mix. Residential service is higher margin; commercial install is lower. This calculator benchmarks against your specific mix.
Is this calculator accurate?
It provides a directional estimate — enough to know whether a deeper look is worth your time. The numbers depend on the accuracy of what you enter. The Business Checkup is where we verify the real numbers inside your business.
Try another calculator
Owner Bottleneck Calculator
Estimate what low-value owner time and staff waiting may be costing the business each year. If you a...
Crew Productivity Calculator
Compare your crew's available labor capacity against the labor revenue the business actually recover...
Material Recovery Calculator
Estimate whether parts, materials, equipment, supplies, warranty, discounts, or poor tracking may be...
Cash Trapped in Receivables
Estimate cash tied up in receivables, slow invoicing, aging AR, missed change orders, and financing ...
This is not meant to replace a real analysis.
The calculator is a starting point. The Business Checkup is where a senior analyst verifies the numbers and finds the operational cause behind the problem.