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:| Cost component | What it includes |
|---|---|
| Drive costs | Mileage to and from the job site (round trip, using your configured mileage rate) |
| Equipment costs | Depreciation and wear based on flight hours and your equipment cost per hour |
| Overhead | Allocated percentage of revenue covering insurance, software, licenses, marketing, and other business expenses |
Rate settings
Configure your rates in Services > Pricing. These settings are organization-level and apply to all profitability calculations.| Setting | Description | Default |
|---|---|---|
| Target hourly profit | The minimum profit per hour you want to earn | Your configured rate |
| Mileage rate | Cost per mile for travel to job sites | IRS standard rate |
| Overhead percentage | Percentage of revenue allocated to business overhead | 20% |
| Equipment cost per hour | Hourly cost of equipment depreciation and wear | $15/hr |
Time estimates
For each service type, you can set default time estimates:| Time category | What it covers |
|---|---|
| Flight time | Hours in the air on site |
| Editing/processing | Post-flight data processing, photo editing, mapping |
| Report generation | Creating deliverables, reports, and documentation |
| Admin | Communication, scheduling, and project management |
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
| Metric | What it tells you |
|---|---|
| Revenue | The quoted price |
| Total costs | Drive + equipment + overhead |
| Profit | Revenue minus total costs |
| Profit margin | Profit as a percentage of revenue |
| Profit per hour | Your effective hourly rate on this job |
| Meets target | Whether profit per hour meets your target rate |
Recommendations
Based on your profit per hour vs. target rate, the calculator gives one of three recommendations:| Recommendation | Condition | Action |
|---|---|---|
| Accept | Profit/hr meets or exceeds your target | Take the job |
| Review | Profit/hr is 80-100% of your target | Consider negotiating a higher price |
| Decline | Profit/hr is below 80% of your target | The suggested price to meet your target is shown |
Margin health
Profit margins are categorized for quick visual assessment:| Status | Margin range |
|---|---|
| Loss | Below 0% |
| Low | 0% - 15% |
| Healthy | 15% - 30% |
| Excellent | Above 30% |
How expenses flow in
When using actuals mode, the profitability engine aggregates your Expenses by category:Overhead expenses are summed
Categories like Software, Insurance, Accounting, Marketing, Licenses, Facilities, Training, Permits, Data & Storage, and general Overhead are totaled for the year.
Equipment expenses are summed
Equipment purchases, Maintenance, and Supplies are totaled separately.
Overhead percentage is calculated
Total overhead divided by annual revenue gives the actual overhead percentage used in calculations.
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.