Service Price Calculator
Stop guessing what to charge. Calculate the exact price for any job based on your labor costs, materials, overhead, and desired profit margin.
Service Price
$407
What to charge the customer
Your Profit
$100
24.6% margin
Markup
32.6%
Over total costs
Effective Rate
$45/hr
Your time value
Labor Costs
What you pay each worker per hour
Total job duration
Materials & Overhead
Total cost of supplies for this job
Rent, insurance, tools, phone, etc.
Billable hours you work monthly
Desired Profit
The amount your business keeps after all costs
Labor
$180
Materials
$80
Overhead
$47
Total Costs
$307
Your Profit
$100
Quote Price
$407
How to Price Your Services
1. Labor Costs
Workers × hourly rate × hours = what you pay your team
2. Materials
All supplies and parts needed for the job
3. Overhead
Your monthly expenses divided across billable hours
4. Profit
What your business keeps after all costs
Formula: Labor + Materials + Overhead + Profit = Your Quote
2025 Industry Rate Benchmarks
HVAC Technicians
Electricians
Plumbers
Source: Industry data from Housecall Pro, ServiceTitan, and HomeAdvisor (2025)
Why Most Contractors Underprice Their Services
The #1 mistake contractors make? Forgetting to include overhead costs.You might charge $50/hour, but after paying for your truck, insurance, tools, phone, and other expenses, your actual profit might be $20/hour—or less.
This calculator forces you to account for every cost, so you quote jobs that actually make money. No more "busy but broke" syndrome.
What to Include in Overhead
- Vehicle expenses – gas, insurance, maintenance, loan payments
- Tools & equipment – purchases, repairs, replacement
- Insurance – liability, workers comp, health
- Office costs – phone, software, accounting
- Marketing – website, ads, business cards
- Licenses & permits – annual fees, certifications
Profit Margin vs Markup: What's the Difference?
Profit margin is your profit divided by the total price. A $500 job with $100 profit has a 20% margin.
Markup is your profit divided by your costs. That same job ($400 costs, $100 profit) has a 25% markup.
Industry standard for contractors is typically 10-20% profit margin or 15-30% markup. Specialty work or emergency calls can justify higher margins.
Frequently Asked Questions
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