HVAC and refrigeration
HVAC service agreement profitability
Price expected visits labor travel and supplied incident scenarios.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
agreement revenue-scheduled costs-expected incident cost.
Each incident row is an expected cost component; do not overlap the same loss across rows. Probabilities are assumptions. Scheduled costs exclude those incident losses.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Annual agreement revenue (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for annual agreement revenue. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Annual scheduled visit labor travel and other costs: One row per distinct annual scheduled visit labor travel and other costs, on the stated row and period basis. Do not enter both components and their total.
- Cost amount (selected currency): Matching invoice, quote, statement, bookkeeping record or explicit budget amount for cost amount. Use the stated period and exclude amounts already counted in another field. Zero means intentionally excluded/not incurred, not unknown.
- Assumed annual incident scenarios: One row per distinct assumed annual incident scenarios, on the stated row and period basis. Do not enter both components and their total.
- Probability of scenario (%): Owner’s explicit comparable-period probability assumption; observed history can inform but not certify it.
- Annual cost if this scenario occurs (selected currency): Loss if this annual scenario occurs; avoid overlapping the same loss in multiple rows.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Expected annual contribution is $600.00 for the illustrative inputs below.
Example inputs
- Annual agreement revenue: $1,500.00
- Annual scheduled visit labor travel and other costs
- Cost amount: $600.00
- Cost amount: $100.00
- Assumed annual incident scenarios
- Probability of scenario: 20.00 %
- Annual cost if this scenario occurs: $1,000.00
- Expected annual contribution
- $600.00
- Expected incident cost
- $200.00
- Expected contribution margin
- 40.00 %
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Price expected visits labor travel and supplied incident scenarios.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.