Profitability
Know whether a job is worth taking before you commit. The profitability module calculates your true profit per hour on every Project by factoring in revenue, expenses, and time — then tells you whether it meets your target rate.The formula
At its core, profitability is:
The key metric is profit per hour — your total profit divided by total working hours (drive time + flight + processing + admin). This is compared against your target hourly rate to give you a clear accept/review/decline recommendation.
Rate settings
Configure your rates in Services > Pricing. These settings are organization-level and apply to all profitability calculations.Time estimates
For each service type, you can set default time estimates:
These defaults are used when calculating profitability but can be overridden per project.
Cost modes
The profitability calculator supports two modes for determining overhead and equipment costs:Estimated mode (default)
Uses the fixed percentages from your rate settings. Good when you are starting out or don’t have a full year of expense data yet.Actuals mode
Pulls real data from your Expenses to calculate:- Overhead percentage — Total overhead expenses divided by annual revenue
- Equipment cost per hour — Total equipment expenses divided by estimated annual flight hours (200 hrs)
Actuals mode requires both expense data and sufficient revenue data (from Proposals and deals) for the current year. If either is missing, you’ll see a message explaining what’s needed.
Per-project profitability
Open any Project to run a profitability analysis. The calculator factors in:- Quote amount — The agreed price for the project
- Distance — Miles to the job site (calculates round-trip drive cost)
- Drive time — Time spent traveling
- Service type — Determines default time estimates
- Time overrides — Adjust flight, processing, report, and admin hours for this specific job
The result
Recommendations
Based on your profit per hour vs. target rate, the calculator gives one of three recommendations:Margin health
Profit margins are categorized for quick visual assessment:How expenses flow in
When using actuals mode, the profitability engine aggregates your Expenses by category:1
Overhead expenses are summed
Categories like Software, Insurance, Accounting, Marketing, Licenses, Facilities, Training, Permits, Data & Storage, and general Overhead are totaled for the year.
2
Equipment expenses are summed
Equipment purchases, Maintenance, and Supplies are totaled separately.
3
Overhead percentage is calculated
Total overhead divided by annual revenue gives the actual overhead percentage used in calculations.
4
Equipment cost per hour is derived
Total equipment expenses divided by estimated annual flight hours (200 hrs) gives the per-hour equipment cost.
Dashboard integration
Profitability data surfaces on your Dashboard in the financials section, giving you a high-level view of how your business is performing without navigating into individual projects.Tips
Start with estimated mode, graduate to actuals
Start with estimated mode, graduate to actuals
If you’re new to dronelist, use estimated mode with reasonable defaults. Once you have a full year of Expenses logged, switch to actuals for data-driven calculations.
Set a realistic target hourly rate
Set a realistic target hourly rate
Your target rate should cover your desired income plus taxes, benefits, and business growth. Research industry benchmarks for your service types.
Override time estimates for unusual jobs
Override time estimates for unusual jobs
Default time estimates work for standard jobs, but complex projects may need more processing or admin time. Use per-project overrides to get an accurate picture.
Use profitability to inform your pricing
Use profitability to inform your pricing
If you consistently see Review or Decline recommendations, it may be time to raise your service prices in Services & Pricing. The suggested prices in decline recommendations can guide your adjustments.
Track all invoice payments for revenue accuracy
Track all invoice payments for revenue accuracy
In actuals mode, revenue is calculated from accepted proposals and deals. Make sure you’re creating Invoices through the platform so revenue data stays complete.