How the hvac bid calculator is calculated
margin on marked-up items = markup ÷ (1 + markup)
Worked example: a system replacement bid
These are the example defaults loaded above: $4,800 of equipment, $650 of materials, 16 hours at $85, a 20% markup and a $250 permit.
| Line | Amount |
|---|---|
| Equipment at cost | $4,800.00 |
| Materials at cost | $650.00 |
| Markup at 20% on $5,450.00 | $1,090.00 |
| Labor, 16 hours at $85 | $1,360.00 |
| Permit and inspection | $250.00 |
| Bid price | $8,150.00 |
| Deposit at 30% | $2,445.00 |
Every default in the calculator is an example so you can see a result straight away. None is a market average. Replace each with your own costs and rates.
Markup is not margin
A 20% markup on $5,450 of cost adds $1,090, which is 16.7% of the $6,540 those items sell for. If you price to a target margin instead, the markup calculator converts one into the other.
Labor hours are the shaky number
Equipment cost comes off a supplier quote, but labor hours are your own estimate, and an install that runs long eats the margin first. Count travel, setup, a second visit for the final connections and cleanup, not only the time the unit takes to set.
Permits belong in the bid
If your area requires a permit or inspection, put the fee on its own line so the customer sees it is a pass-through, not padding. Leave it at 0 where none applies.
Turn this into an estimate or invoice
The button under the result carries these lines into the document generator, ready to edit. To price the whole job section by section with waste and a deposit, open the cost estimator set up for HVAC. For HVAC designs and presets, see the HVAC invoice page.
Related calculators
- Markup calculatorTurn markup into margin and back
- Contractor invoice calculatorLabor, materials and job costs into an invoice
Questions people ask
How do I calculate an HVAC bid?
Add equipment and materials at cost, apply your markup, add labor hours times your rate, then add the permit fee. The total is the bid price.
What markup should I use on HVAC equipment?
That is your decision. Pick a percentage that covers overhead and leaves the profit you need. The calculator shows the margin your markup gives so you can compare it with your target.
Is markup the same as margin?
No. Markup is measured on cost and margin on the selling price. A 20% markup is a 16.7% margin.
Should labor carry a markup too?
Here labor is hours times your own rate, which you should set to include your overhead and profit. If you mark labor up separately, raise the rate instead.
How big a deposit should I ask for?
Enough to cover the equipment you must order up front. Enter the percentage you use; the calculator shows the amount.
Are the default numbers typical HVAC prices?
No. They are examples so the calculator shows a working result. Replace every one with your own costs.