Service Price Calculator

The calculator multiplies the number of workers by the hours to complete the job and then by the average hourly pay to produce your total labor cost. That labor cost becomes the first building block of your service price. If you change any one of the three labor inputs, the labor cost updates automatically and flows through to the final service price, profit percentage, and markup percentage in the results. This makes it easy to see how adding a second electrician or estimating an extra hour of work affects your price before the quote goes out.

The calculator divides all monthly expenses by the total working hours in a month to get an overhead rate per hour. It then multiplies that rate by the hours needed to complete the specific job to allocate the right share of overhead to that job. This means every job carries a proportional overhead burden based on how long it takes, rather than a flat fee that either overloads short service calls or undercharges on longer installation jobs.

The profit input is the actual dollar amount your business wants to make on the job after all costs are paid. The calculator adds this directly on top of your labor cost, material cost, and overhead expenses to produce the service price. It then calculates your profit percentage by dividing profit by service price and multiplying by 100, and your markup percentage by dividing profit by total cost and multiplying by 100. Entering your desired profit upfront means the price you get out is already built to hit your target, not something you calculate after the invoice is sent.

Profit percentage tells you what share of the service price is profit. Using the calculator example, a $1,000 profit on a $4,010 service price produces a profit percentage of 24.94%. Markup percentage tells you how much above your total cost you are charging. The same numbers produce a markup percentage of 33.22%. Both figures appear in the results because they answer different questions. Profit percentage reflects your margin health. Markup percentage reflects how your pricing compares to your cost base, which is useful when benchmarking against industry rates or reviewing your pricing strategy across different job types.

Enter your actual labor inputs, material cost, and monthly overhead figures for a specific job type, then set your desired profit to zero. The service price output will show you the absolute minimum you need to charge just to break even on that job. Compare that break-even price to what you are currently charging. If your current rate is below the break-even output, your pricing is not covering all costs on that service. If it is above, the gap between your current rate and break-even is your actual profit, which you can then verify against your profit percentage target.