Industry benchmarks · cost diagnostics
Electrical Profit Margin Calculator
Calculate your electrical company's profit margin and compare it against industry benchmarks.
Electrical profit margin is the key metric for evaluating contractor sustainability — yet many owners track revenue without knowing their true net margin. This calculator computes margin from real cost inputs and benchmarks you against electrical contractors nationwide.
- Net margin = (Revenue − Payroll − Materials − Fleet − Marketing − Overhead) ÷ Revenue
- Industry median is 10%; healthy electrical companies fall between 7–13%
- Electrician payroll and materials together should stay under 62% of revenue
Built for electrical owners, aspiring contractors, and buyers evaluating electrical company profitability.
Source: BizMetricsHQ 340+ electrical contracting businesses (2025–2026). Methodology
Your Numbers
Enter annual figures from your P&L.
Net Profit
$200,000
Net Margin
10.0%
Gross Margin
76.0%
Industry Benchmark
Average Electrical: 7–13%
Median 10% · 380+ U.S. Electrical businesses
Average
Profit Breakdown
- Electrician Payroll$720,000 (36%)
- Materials & Parts$480,000 (24%)
- Fleet$140,000 (7%)
- Marketing$120,000 (6%)
- Overhead$340,000 (17%)
- Net Profit$200,000 (10%)
Bottom Quartile
4–6%
Thin margins — review labor efficiency and project estimating.
Average
7–10%
Typical range for owner-operated electrical contractors.
Top Quartile
11–13%
Strong operators with commercial mix and disciplined labor management.
Elite
14%+
Best-in-class companies with high-value installs and lean overhead.
Related Electrical Data
- Electrical Revenue Benchmarks
Median $2.0M — revenue by electrician count and service mix.
- Electrical Profit Margins
Net margin tiers, gross margin, and cost structure.
- Electrical Owner Salary
What electrical owners earn by company size.
- Electrical Valuation Multiples
SDE, EBITDA, and revenue multiples for electrical sales.
Frequently Asked Questions
What is a good profit margin for an electrical business?
A good net profit margin for an owner-operated electrical company is 10–13%. Top-quartile operators with strong commercial mix and maintenance contracts achieve 14–17%. Below 7% signals payroll burden, estimating issues, or weak pricing.
What is the average electrical profit margin?
The median net profit margin for U.S. electrical contractors is approximately 10%, based on our sample of 340+ businesses. Residential service-heavy companies average 8–12%; commercial-focused firms can reach 11–15%.
How can electrical companies improve profitability?
The highest-impact levers are commercial project mix, labor utilization (target 65%+ billable hours), material cost control, maintenance contract penetration, and accurate job estimating on bid work.
What is a healthy gross margin for electrical contracting?
Healthy electrical gross margins (revenue minus direct materials and job costs) typically run 40–50%. Service work tends toward the higher end; new construction rough-in runs lower but at higher volume.