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Overhead Cost Calculator

Add up all monthly/annual overhead costs to know your true break-even. HVAC-specific categories and benchmarks.

Facility (Monthly)
Fleet (Per Truck)
Insurance (Monthly)
People (Monthly, Non-Tech)
Operations (Monthly)
Compliance (Monthly)
Marketing (Monthly)
Other (Monthly)
Context (For Per-Hour & Per-Call Math)

How to Use This Calculator

1. Fill in each overhead category. Start with the defaults and adjust to match your actual expenses. Every dollar you spend to keep the business running that is not tied to a specific job belongs here. Open each section and enter your real monthly numbers.

2. Set your fleet size. Enter the number of trucks you operate. The calculator multiplies per-truck costs (fuel, insurance, maintenance, payments) by your fleet size to get the total fleet overhead.

3. Enter your context numbers. The number of techs, billable hours per tech, annual revenue, daily service calls, and working days let the calculator translate raw overhead into per-hour and per-call figures you can use for pricing.

4. Review your results. Check whether your overhead percentage falls within the 25-35% target range. Use the per-hour and per-call numbers to make sure your billing rates cover overhead plus profit.

How HVAC Overhead Works

Overhead is every cost that keeps the business running but cannot be billed to a specific job. It includes rent, trucks, insurance, office salaries, software, marketing, and licensing. Unlike materials or tech labor, overhead does not change based on how many jobs you run in a given week.

Most HVAC business owners know their overhead exists but have never added it up. That means they are guessing when they set prices. If your overhead is $30,000 per month and you do not know it, you cannot build it into your rates, and every job looks more profitable than it actually is.

The per-hour number is the most important output. It tells you exactly how much overhead you burn for every billable hour a tech works. If your overhead per hour is $130 and you bill the customer $150 per hour, you only have $20 left to cover the tech's wages and profit. That math does not work. Knowing this number forces you to price correctly.

Fleet_Monthly = Trucks × (Fuel + Insurance + Maintenance + Payment)

Total_Monthly = Facility + Fleet + Insurance + People + Operations + Compliance + Marketing + Other

Annual_Overhead = Total_Monthly × 12

Per_Tech = Annual_Overhead / Number_of_Techs

Per_Hour = Annual_Overhead / (Techs × Billable_Hours × 12)

Per_Call = Annual_Overhead / (Calls_Per_Day × Working_Days × 12)

Overhead_Pct = (Annual_Overhead / Annual_Revenue) × 100

The category breakdown shows where your money goes so you can identify the biggest line items. People and fleet are almost always the top two. If marketing is below 6% of revenue, you may be underinvesting in growth.

When HVAC Pros Use This

Setting billing rates. Before you decide what to charge per hour or per call, you need to know your overhead per hour. This calculator gives you that number so you can build rates that actually cover your costs and leave room for profit. Without it, you are guessing.

Annual budgeting and planning. At the start of each year, plug in your expected costs to see where you will land. If overhead is creeping above 35% of projected revenue, you know you need to either cut costs or grow revenue before the year gets away from you.

Evaluating growth decisions. Thinking about adding a truck, hiring a dispatcher, or increasing your ad spend? Enter the new numbers and see how they change your overhead per hour and overhead percentage. This prevents surprises when the bills start rolling in after you have already committed.

Frequently Asked Questions

What are typical HVAC business overhead costs?
Most HVAC businesses carry 25-40% overhead relative to revenue. The largest categories are usually fleet costs (fuel, insurance, payments), payroll for non-tech staff (office, dispatch, owner salary), insurance (general liability, workers comp), and marketing. A three-truck shop with an office typically runs $18,000-$28,000 per month in overhead before any tech labor or job materials.
How do I calculate overhead per hour?
Divide your total annual overhead by the total billable hours your techs produce in a year. For example, if annual overhead is $300,000 and you have 3 techs each billing 768 hours per year (64 hours per month), your total billable hours are 2,304. Overhead per hour is $300,000 / 2,304 = $130.21. This number must be built into your hourly billing rate on top of labor cost and profit margin.
What percentage of revenue should go to overhead?
The target range for HVAC companies is 25-35% of revenue going to overhead. Below 25% usually means a lean operation or underinvestment in growth. Above 35% signals you may be overspending or underpricing. Marketing alone should be 6-8% of revenue for a stable business and 10-15% if you are actively growing. Fleet costs typically run 8-12% and insurance 3-5%.
How do I reduce HVAC business overhead?
Start by identifying your top three overhead categories. Common wins include renegotiating insurance annually, optimizing truck routes to cut fuel costs, switching to cloud-based dispatch software, cross-training office staff to eliminate redundant positions, and auditing subscriptions for unused services. Do not cut marketing below 6% of revenue or you will shrink your pipeline. Focus on efficiency gains rather than blanket cuts.

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