Commercial vs Residential Revenue Calculator

Understand the financial and operational impact of each service model. Expert-validated metrics including time efficiency, cash flow, and growth planning.

Residential

$275
4
65%
50
35 min
45 min

Commercial

$350
12
85%
8
25 min
90 min
1.5 hrs

Results Comparison

Annual Revenue per Account

$1,100

$4,200

Customer Lifetime Value

$3,143

$28,000

Total Annual Revenue

$55,000

$33,600

Revenue per Service Hour

$206

$102

Revenue per Total Hour

$206

$102

Effective Hourly Rate

$206

$102

Total Annual Revenue

Residential$55,000
Commercial$33,600

Revenue per Service Hour

Residential$206
Commercial$102

Effective Hourly Rate

Residential$206
Commercial$102

Revenue Ratio: Commercial generates 0.6x more revenue than residential with the same account count.

Time Efficiency: Commercial accounts take 43.8% more time per visit but generate -50.3% more revenue per hour.

Stability: With 85% commercial renewal vs 65% residential, your commercial portfolio is more predictable and generates more consistent monthly revenue.

12-Month Cash Flow Timeline

Jan$5,130
Feb$5,588
Mar$6,276
Apr$6,963
May$7,880
Jun$8,338
Jul$8,338
Aug$8,109
Sep$7,422
Oct$6,505
Nov$5,588
Dec$5,130

Growth Path Calculator

$1,000,000

Option A: 100% Residential

Accounts: 910 accounts

Revenue: 910 × $1,100 = $1,001,000

Service Hours: 4853 hours/month

Option B: 100% Commercial

Accounts: 239 accounts

Revenue: 239 × $4,200 = $1,003,800

Service Hours: 9799 hours/month

Option C: Recommended 40/60 Split (Most Efficient)

Accounts: 364 residential + 144 commercial

Revenue: 364 × $1,100 + 144 × $4,200 = $1,005,200

Service Hours: 7845 hours/month

Most efficient growth path

Why Commercial Accounts Drive Growth

  • Higher average contract value and longer customer lifetime
  • More predictable monthly revenue with higher renewal rates
  • Better revenue per hour despite higher operational overhead
  • Stabilized cash flow reduces seasonal revenue fluctuations
  • Easier to scale with predictable service hours and contract terms

Frequently Asked Questions

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