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MethodologyWhere the numbers come from.
Direct answer: IronMargin's benchmarks and calculator are operator-observed planning guides drawn from running multi-trade home-services companies doing $1M–$15M in revenue — not a formal industry survey, and not a guarantee for any individual business.
What "IronMargin operator benchmark" means
When a figure on this site is labelled an IronMargin operator benchmark or operator estimate, it means the range was observed and is used for planning purposes by operators who have run multi-trade home-services businesses — not pulled from a published, peer-reviewed industry study. We use these figures because they reflect what actually shows up on a running dispatch board and P&L, but they are directional, not audited.
Revenue range and business types represented
The benchmarks on this site are drawn from operating home-services businesses generally in the $1M–$15M annual revenue range, with three to 30 employees, running multi-trade or single-trade field service operations (HVAC, plumbing, electrical, and adjacent home-services trades). Figures may not transfer cleanly to businesses well outside that band — a $500K solo operation or a $50M multi-location platform will see different dynamics.
Ranges are planning guides, not a formal survey
Nothing on this site should be read as a statistically representative industry study. We do not survey a random sample of trades businesses, and we do not publish confidence intervals. Use these ranges to sanity-check your own numbers and start a conversation with your own advisors — not as a substitute for your own financial statements or professional advice.
The EBITDA Leak Calculator's model assumptions
The calculator at /calculator takes five inputs — annual revenue, number of trucks, number of techs, average ticket, and gross margin — and estimates a leak across seven categories using these fixed constants:
- $120/hour assumed billable labour rate
- 220 assumed working days per year
- 1,760 assumed paid hours per technician per year
- 30% assumed parts-to-revenue ratio
- $420 target average ticket used for the pricing-leak comparison
- Every raw estimate is scaled back by a 20% conservatism factor and rounded down to the nearest $500 (leaks) or $1,000 (total)
- Each individual leak is capped at 10% of the revenue you enter; the total is capped at 15% of revenue
Where the estimates overlap
The scheduling leak (windshield time) and the labour-productivity leak (non-billable time) both measure billable-hour recovery from different angles. Counting both in full would double-count the same underlying hours, so the model takes the larger of the two in full and only 35% of the smaller before summing the total. This is why the seven displayed leak values can add up to more than the displayed total — that gap is intentional, not an error.
How often these numbers are reviewed
The IronMargin team reviews these benchmarks and the calculator's constants periodically as the underlying operating data is refreshed. We do not currently publish a fixed review schedule; if a figure on this site looks out of date, tell us and we'll take a look.
Disclaimer
Benchmarks and calculator outputs are estimates. Results vary by business, market, and execution. Nothing on this site is legal, tax, accounting, investment, or employment advice. See the full disclaimer for details, and consult your own qualified professionals for decisions specific to your business and jurisdiction.