District Energy & Thermal Network Equipment worked example

Project Margin with project sell price or funded revenue of 63 $: a worked example in district energy & thermal network equipment

This worked example runs the project margin numbers for a tougher week than the baseline: project sell price or funded revenue of 63 $ instead of the typical 125 $. Calculate margin for a district heating, district cooling, central plant, thermal storage, or distribution network project on a consistent scope and revenue basis.

The inputs for this scenario

  • Project sell price or funded revenue: 63 $ (the input this scenario stresses; the baseline uses 125)
  • Required project cost: 100 $ (held at the documented default)
  • Reference project revenue: 100 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Project gross margin dollars = project sell price or funded revenue - required project cost.
  • Project margin works out to -37 % at these inputs, and this is the headline figure for the scenario.
  • Project gross margin dollars works out to -37 value at these inputs.
  • Project sell price or funded revenue works out to 63 value at these inputs.
  • Required project cost works out to 100 value at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where project sell price or funded revenue sits at 125 $ and the headline result is 25 %, this scenario comes in 248% below the baseline at -37 %.
  • Use it at bid time to screen opportunities and during delivery to track whether the as-built cost is eroding the margin you priced. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Project margin: -37 % (headline result)
  • Project gross margin dollars: -37 value
  • Project sell price or funded revenue: 63 value
  • Required project cost: 100 value

Run it with your numbers

  • To rerun this with your own numbers, open the live Project Margin calculator, set project sell price or funded revenue to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.