Beta 8.5. Enter local overhead, home office overhead, COGS, and an expected year-end sales figure to see break-even, the 10% target, and a live projection at your expected sales — plus how net profit grows in $500,000 increments out to a 15% net margin.
Fixed local operating costs, per period.
Home office overhead as a share of sales, e.g. 0.05 = 5%.
Home overhead stops growing once it reaches this dollar amount.
Cost of goods sold as a share of sales, e.g. 0.60 = 60%.
Projected results are computed at this exact sales figure.
Sales already booked/contracted toward the year-end figure.
Identifying number for this local market.
Short description of this local market.
Total number of workers in the local market.
Share of the local market that is commercial, e.g. 0.65 = 65%.
Number of workers currently employed in the local market.
Current Employed ÷ (Local Size × Percent Commercial).
Total hours worked in the local market over the trailing period.
Share of those hours that are commercial, e.g. 0.65 = 65%.
Average billable rate per hour.
Hours your company worked over the same trailing period.
(Trailing Period Hours × Percentage Commercial) × Billable Rate.
Sales at 10% net margin ÷ Commercial Market Size.
Booked Backlog ÷ Commercial Market Size, for comparison.
Trailing Period Company Hours ÷ (Trailing Period Local Hours × Percentage Commercial).
Multiplier on the commercial market, e.g. 1.05 = market grows 5%, 0.95 = shrinks 5%.
Sales at 10% net margin ÷ (Commercial Market Size × Expected Market Adjustment).
Dashed line marks the 10% net margin target; the line continues out to 15% for context. The orange marker shows your Expected Year-End Sales. In the table below, the blue row is the step closest to your Expected Year-End Sales. Hover the line for exact values.
| Step | Sales | COGS $ | Gross Profit | Local Overhead | Local Overhead % | Home Overhead | Home Overhead % | Total Overhead | Total Overhead % | Net Profit | Net Margin |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | $7,250,000 | $5,582,500 | $1,667,500 | $1,450,000 | 20% | $217,500 | 3% | $1,667,500 | 23% | $0 | 0% |
| 1 | $7,750,000 | $5,967,500 | $1,782,500 | $1,450,000 | 18.7% | $232,500 | 3% | $1,682,500 | 21.7% | $100,000 | 1.3% |
| 2 | $8,250,000 | $6,352,500 | $1,897,500 | $1,450,000 | 17.6% | $247,500 | 3% | $1,697,500 | 20.6% | $200,000 | 2.4% |
| 3 | $8,750,000 | $6,737,500 | $2,012,500 | $1,450,000 | 16.6% | $262,500 | 3% | $1,712,500 | 19.6% | $300,000 | 3.4% |
| 4 | $9,250,000 | $7,122,500 | $2,127,500 | $1,450,000 | 15.7% | $277,500 | 3% | $1,727,500 | 18.7% | $400,000 | 4.3% |
| 5 | $9,750,000 | $7,507,500 | $2,242,500 | $1,450,000 | 14.9% | $292,500 | 3% | $1,742,500 | 17.9% | $500,000 | 5.1% |
| 6 | $10,250,000 | $7,892,500 | $2,357,500 | $1,450,000 | 14.1% | $300,000 | 2.9% | $1,750,000 | 17.1% | $607,500 | 5.9% |
| 7 | $10,750,000 | $8,277,500 | $2,472,500 | $1,450,000 | 13.5% | $300,000 | 2.8% | $1,750,000 | 16.3% | $722,500 | 6.7% |
| 8 | $11,250,000 | $8,662,500 | $2,587,500 | $1,450,000 | 12.9% | $300,000 | 2.7% | $1,750,000 | 15.6% | $837,500 | 7.4% |
| 9 | $11,750,000 | $9,047,500 | $2,702,500 | $1,450,000 | 12.3% | $300,000 | 2.6% | $1,750,000 | 14.9% | $952,500 | 8.1% ● |
| 10 | $12,250,000 | $9,432,500 | $2,817,500 | $1,450,000 | 11.8% | $300,000 | 2.4% | $1,750,000 | 14.3% | $1,067,500 | 8.7% |
| 11 | $12,750,000 | $9,817,500 | $2,932,500 | $1,450,000 | 11.4% | $300,000 | 2.4% | $1,750,000 | 13.7% | $1,182,500 | 9.3% |
| 12 | $13,250,000 | $10,202,500 | $3,047,500 | $1,450,000 | 10.9% | $300,000 | 2.3% | $1,750,000 | 13.2% | $1,297,500 | 9.8% |
| 13 | $13,750,000 | $10,587,500 | $3,162,500 | $1,450,000 | 10.5% | $300,000 | 2.2% | $1,750,000 | 12.7% | $1,412,500 | 10.3% ✓ |
| 14 | $14,250,000 | $10,972,500 | $3,277,500 | $1,450,000 | 10.2% | $300,000 | 2.1% | $1,750,000 | 12.3% | $1,527,500 | 10.7% |
| 15 | $14,750,000 | $11,357,500 | $3,392,500 | $1,450,000 | 9.8% | $300,000 | 2% | $1,750,000 | 11.9% | $1,642,500 | 11.1% |
| 16 | $15,250,000 | $11,742,500 | $3,507,500 | $1,450,000 | 9.5% | $300,000 | 2% | $1,750,000 | 11.5% | $1,757,500 | 11.5% |
| 17 | $15,750,000 | $12,127,500 | $3,622,500 | $1,450,000 | 9.2% | $300,000 | 1.9% | $1,750,000 | 11.1% | $1,872,500 | 11.9% |
| 18 | $16,250,000 | $12,512,500 | $3,737,500 | $1,450,000 | 8.9% | $300,000 | 1.8% | $1,750,000 | 10.8% | $1,987,500 | 12.2% |
| 19 | $16,750,000 | $12,897,500 | $3,852,500 | $1,450,000 | 8.7% | $300,000 | 1.8% | $1,750,000 | 10.4% | $2,102,500 | 12.6% |
| 20 | $17,250,000 | $13,282,500 | $3,967,500 | $1,450,000 | 8.4% | $300,000 | 1.7% | $1,750,000 | 10.1% | $2,217,500 | 12.9% |
| 21 | $17,750,000 | $13,667,500 | $4,082,500 | $1,450,000 | 8.2% | $300,000 | 1.7% | $1,750,000 | 9.9% | $2,332,500 | 13.1% |
| 22 | $18,250,000 | $14,052,500 | $4,197,500 | $1,450,000 | 7.9% | $300,000 | 1.6% | $1,750,000 | 9.6% | $2,447,500 | 13.4% |
| 23 | $18,750,000 | $14,437,500 | $4,312,500 | $1,450,000 | 7.7% | $300,000 | 1.6% | $1,750,000 | 9.3% | $2,562,500 | 13.7% |
| 24 | $19,250,000 | $14,822,500 | $4,427,500 | $1,450,000 | 7.5% | $300,000 | 1.6% | $1,750,000 | 9.1% | $2,677,500 | 13.9% |
| 25 | $19,750,000 | $15,207,500 | $4,542,500 | $1,450,000 | 7.3% | $300,000 | 1.5% | $1,750,000 | 8.9% | $2,792,500 | 14.1% |
| 26 | $20,250,000 | $15,592,500 | $4,657,500 | $1,450,000 | 7.2% | $300,000 | 1.5% | $1,750,000 | 8.6% | $2,907,500 | 14.4% |
| 27 | $20,750,000 | $15,977,500 | $4,772,500 | $1,450,000 | 7% | $300,000 | 1.4% | $1,750,000 | 8.4% | $3,022,500 | 14.6% |
| 28 | $21,250,000 | $16,362,500 | $4,887,500 | $1,450,000 | 6.8% | $300,000 | 1.4% | $1,750,000 | 8.2% | $3,137,500 | 14.8% |
| 29 | $21,750,000 | $16,747,500 | $5,002,500 | $1,450,000 | 6.7% | $300,000 | 1.4% | $1,750,000 | 8% | $3,252,500 | 15% |
| 30 | $22,250,000 | $17,132,500 | $5,117,500 | $1,450,000 | 6.5% | $300,000 | 1.3% | $1,750,000 | 7.9% | $3,367,500 | 15.1% |