Service price calculator
Add up labor, materials and overhead for a job, set your profit, and get the price to quote with the margin it leaves.
Enter job costs
Labor costs - total for job
Wages + taxes + insurance + benefits for this job. Example 3h × $30 = $90
Material costs - supplies, parts, delivery
Parts, supplies, consumables and delivery. Enter 0 for a labor-only job.
Overhead costs - for this job
Transport, tools, office, insurance share. Example 3h × $15 = $45
Desired profit - dollar amount
Net $ you keep after costs. Leave 0 if using %
Desired profit - percent markup
A 25% markup leaves a 20% margin. Ignored if a dollar profit is entered.
Worked examples
Service price to invoice
$168.75
For 3 hour job at $56.25/hr
Formula: Cost basis $135 = Labor $90 + Material $0 + Overhead $45. Service Price = Cost basis × (1 + 25%) = $168.75. Simple version: Service Price = Labor + Material + Overhead + Profit = $90+$0+$45+$33.75=$168.75
Service - Handyman door trim 3h - Labor $90 + Overhead $45 = $135 cost + 25% profit = $168.75 total to invoice
Watch the calculator fill itself in
The same panel you used above, building a price from labor, materials and overhead, then showing what happens when the profit is set as a markup instead of a margin.
Your price to quote
$0.00
Price to quote
price = cost basis x (1 + markup)
Markup against margin
Start with the hours on site
Jump to any part to replay it. The formulas behind these numbers are set out further down the page.
From a price on this page to money in the bank
A price only earns what the paperwork lets it. These are the four places a well-calculated number turns into a smaller one by the time the job is paid.
Quote the price, not the hourly rate
Clients compare hourly rates and cannot compare outcomes, so an hourly quote invites a conversation about your rate rather than about the job. Quote the figure this page gives you and say what it includes.
Put it in writing with a quote that lists what is and is not included.
Overhead is charged per billable hour, not per hour worked
Two people for six hours is twelve billable hours of overhead, not six. Spreading your monthly fixed costs over the hours you actually invoice is what stops a busy month from leaving nothing behind.
If the figure looks high, the problem is usually the billable hours, not the rate.
A markup is not a margin
Adding 20% to cost leaves a 16.7% margin, not 20%. On the job above that is $39 of profit that quietly went missing, and it goes missing on every job priced the same way.
Decide which one you are quoting and say so on the paperwork.
Invoice the day the work is done
The price you calculated is only worth what you actually collect. Bill the same lines you quoted, on the day you finish, with the due date and any late fee stated.
The invoice generator takes those lines straight from the quote so the two documents agree.
A margin is a decision, not a calculation
The number on this page is only real once it survives the quote, the job and the wait to be paid. These are the three documents that decide whether it does, and the other two are free here as well.
Set the margin
Cost in, margin out, or name the margin you need and take the price it gives you. Check it per line rather than across the whole job.
You are hereQuote at that price
Put the price in writing with what is included, a deposit and a valid-until date, so the figure you calculated is the figure you are held to.
Open the Quote GeneratorInvoice and collect
Bill the day the work is done, with terms, a due date and a stated late fee. Waiting 60 days for payment can cost more than the job earned.
Open the Invoice GeneratorBorrowing to cover the gap between doing the work and being paid? The loan calculator prices that properly, fees included, so you can compare it against simply asking for a deposit.
How to price a service job in five steps
A service price is the cost of the job plus the profit you want from it. The calculator above follows the same five steps, and the Detailed tab works out labor and overhead for you.
Work out the labor cost
Multiply the number of workers by the hours on the job and by what each hour costs you. That hourly cost is more than the wage: add payroll taxes, insurance, benefits and paid leave. Two people for four hours at $30 an hour is $240 of labor.
Add the materials
Everything the job uses, at what you paid, including consumables and delivery. For supplies that last several jobs, charge this job its share. Many trades also add a handling percentage for the time spent buying and collecting.
Add a share of overhead
Overhead is what runs whether or not you are working: rent, insurance, vehicles, phone, software and advertising. Divide a month of it by the hours you bill in a month, then multiply by the job hours. $1,500 a month over 100 billed hours is $15 an hour, so a 3 hour job carries $45.
Add your profit
Enter the profit as a dollar amount or as a markup on cost. A 25% markup on a $135 cost basis gives $168.75, which leaves a 20% margin. If you think in margins, the profit margin calculator works from the margin to the price.
Check the price and quote it
Compare the result with what the job is worth to the client and what others near you charge, then put it in writing with the quote generator so the price you worked out is the price you are held to.
How to estimate labor cost for a job
Labor cost is the number of workers times the hours on the job times the loaded hourly cost of each worker. The loaded cost is the wage plus everything you pay on top of it: payroll taxes, workers' comp and other insurance, benefits and paid time off. In the worked example on this page a $20 wage becomes $30 an hour once $5 of taxes and insurance and $5 of benefits and leave are added.
Count the hours the job really takes, not just time on the task. Travel, setup and cleanup are labor too: a repair that takes 3 hours on site, with half an hour of travel and half an hour of setup and cleanup, is 4 hours of labor. Put labor and materials in together and this page works as a material and labor cost calculator; add overhead and profit and it gives the price to quote.
Labor, materials and overhead: what belongs where
Labor
Everything it costs to put someone on the job: wages, payroll taxes, insurance, benefits, paid leave and training. Formula: workers x hours x loaded hourly cost.
Materials
Physical items bought for the job: main materials, small parts, consumables and the delivery charge. If a box or tin covers several jobs, charge this one its share.
Overhead
Costs of running the business that are not tied to one job and do not stop when the work does: rent, insurance, vehicles, software, marketing, licenses and accounting. Formula: monthly overhead / billed hours a month x job hours.
The service price formula
With a dollar profit
Service price = labor + materials + overhead + profit
Use this when you know the dollar amount you want to keep. Labor $90 + materials $0 + overhead $45 is a $135 cost basis; add $33.75 of profit and the price is $168.75.
With a markup or a margin
Price = cost basis x (1 + markup) or price = cost basis / (1 - margin)
The calculator uses the markup version. A 25% markup on $135 is $168.75. To earn a 25% margin instead you would divide: $135 / 0.75 = $180.
Formula breakdown
Labor = workers x hours x loaded hourly cost
Materials = supplies for the job, or the job's share of a part-used supply
Overhead per hour = monthly overhead / billed hours a month
Job overhead = overhead per hour x job hours
Cost basis = labor + materials + overhead
Markup % = profit / cost basis x 100; margin % = profit / price x 100
Handyman example: $30 labor + $15 overhead = $45 an hour cost basis. A 25% markup makes it $56.25 an hour, and 3 hours is $168.75.
Service pricing examples by trade
Handyman - Repairing doors and fixing trim
Hourly costs: Labor + taxes + insurance = $30/h, Overhead transport tools office = $15/h, Markup 25%, estimated job time 3 hours.
Calculation:
1. Cost basis per hour: $30 direct + $15 overhead = $45/h
2. Markup for profit: $45 ×1.25 = $56.25/h
3. Total job price: $56.25 ×3h = $168.75
Invoice: $169 for 3-hour job.
Landscaping - Lawn mowing and edging medium yard
Hourly costs: Wage + insurance = $20/h, Equipment/transport = $10/h, Markup 30%, estimated job time 5 hours.
Calculation:
Base cost per hour: $20 + $10 = $30/h
After markup: $30 ×1.30 = $39/h
Total for 5 hours: $39 ×5 = $195
Invoice: $195 landscaping job.
Pressure washing - cleaning driveway and patio
Hourly costs: Labor + PPE = $25/h, Equipment depreciation water fuel = $15/h, Markup 20%, estimated time 2.5 hours.
Calculation:
Base cost per hour: $25 + $15 = $40/h
Price after markup: $40 ×1.20 = $48/h
Total job price: $48 ×2.5 = $120
Invoice: $120 pressure washing job.
Quick labor, overhead and price calculators
These 4 shortcuts come from the full calculator above. Each answers one question in plain words: enter your numbers and see an instant answer. Each links to the full calculator for the complete invoice breakdown.
Labor → total labor cost
How many workers, how many hours, hourly pay incl taxes insurance? Enter and get total labor cost for job.
Workers
Hours
Hourly Pay
Formula: Labor = Workers × Hours × Hourly Pay (incl taxes, insurance, benefits)
Labor cost: $90
Example: 1 worker × 3 hours × $30/h = $90 labor.
Monthly expenses → job overhead
Monthly overhead, working hours per month, job hours? Calculate overhead share for this specific job.
Monthly Expenses
Working Hours / Month
Job Hours
Formula: Overhead = (Monthly ÷ Working hours) × Job hours
Job overhead: $45 | Hourly overhead: $15/h
Example: $1500 ÷100h = $15/h ×3h = $45 job overhead.
Labor + material + overhead + profit $ → price
Simple version: Add all costs plus desired profit dollars. Get service price to invoice.
Labor
Material
Overhead
Profit $
Formula: Service Price = Labor + Material + Overhead + Profit
Service price: $168.75
Example: $90 + $0 + $45 + $33.75 = $168.75 → $169 invoice.
Cost + markup % → service price
You want 25% markup. Enter cost basis and markup %. Get price, profit, margin for invoice.
Cost Basis (Labor+Mat+OH)
Markup %
Job Hours
Formula: Service Price = Cost × (1 + Markup%/100), Hourly = Price ÷ Hours
Price: $168.75 | Per hour: $56.25/h | Margin: 20%
Example: $135 ×1.25 = $168.75 ÷3h = $56.25/h, profit margin = $33.75 ÷ $168.75 = 20%.
The pricing mistakes that cost the most
Pricing only the time on the task
Travel, setup and cleanup are hours you pay for. A 3 hour job with an hour of travel, setup and cleanup is 4 hours of labor.
Leaving out overhead
Fuel, insurance, software, rent and equipment upkeep all have to be paid from jobs. Spread them over the hours you bill, not the hours in the month.
Mixing up markup and margin
A 25% markup is a 20% margin. If you set out to earn a 25% margin and add 25%, every job comes in short.
Using last year's costs
Wages, materials and fuel move. Check the figures you price from at least once a year and raise the price when they change.
Service pricing questions, answered
Costs, profit and quoting, answered briefly.
What does this service price calculator do?
It builds a price from what the job actually consumes: the people, the materials, the share of the business it uses up, and what you want to earn from it. It then shows the margin that price leaves, which is the number that tells you whether the job is worth taking.
How do I calculate labor cost for a job?
Multiply the hours on the job by the number of people and by what each costs you an hour, which is not their hourly pay. Add payroll taxes, insurance, benefits and paid leave to the wage to get the loaded rate, and count travel and setup time as well as time on the task.
How do I calculate material costs?
Everything consumed by the job at what you paid, plus a handling percentage for sourcing, collection and breakage. If you buy a full box and use half, decide honestly whether the rest will be used on another job or has effectively been bought for this one.
How do I calculate overhead expenses?
Add a month of the costs that run whether or not you work: rent, insurance, vehicles, phone, software, accountancy, advertising and your own admin time. Divide by the hours you actually bill in a month, and you have the overhead every billable hour has to carry. At $3,000 a month over 120 billable hours, every hour carries $25 before you have earned anything.
How much profit should I add to a job?
Profit is what the business earns after everyone, including you, is paid. Work back from what the business needs rather than copying a percentage, and check the job still pays at that price. The calculator shows the profit in dollars and as a markup, so you can see both before you quote.
How much should I charge per hour for my service?
Start from what an hour costs you to deliver, not from what others charge. Take your monthly overhead, divide by the hours you actually bill, add your pay and payroll costs, then add profit. That figure is your floor; the market decides how far above it you can sit.
How many billable hours are in a month?
Far fewer than the hours you work. Quoting, travel, invoicing and chasing payment are real but unbilled, so 100 to 130 billable hours in a 160 hour month is typical for a one-person trade. Using 160 is the most common reason a rate looks fine and the year does not.
Should I mark up materials?
Yes, and it is not a hidden fee: 10 to 25% covers sourcing, collection, storage, breakage and the cash tied up until the invoice is paid. Say on the quote that materials are charged at cost plus a handling percentage and it stops being a surprise.
What is the difference between markup and margin on a job?
Markup divides profit by cost, margin divides it by the price. A $500 cost sold at $650 is a 30% markup and a 23% margin, and a 20% markup is only a 16.7% margin. Quoting a margin as if it were a markup is how jobs come in lower than planned.
How do I price a job with several workers?
Cost each person separately: their pay, their payroll cost and their share of overhead for the hours they are on site. Two people for four hours is eight billable hours of overhead, not four.
Should I charge a call-out fee?
If travel and diagnosis take real time, yes, and state it before you attend. A call-out fee is how short jobs stop losing money, because the first hour of a small job costs the same as the first hour of a large one.
How do I price an emergency or out-of-hours job?
Price the disruption, not just the hours. A premium of 25 to 100% is normal for evenings, weekends and same-day work, and it should be written into your rates rather than invented on the phone.
How do I raise my prices without losing clients?
Raise on new quotes first, give existing clients notice, and change something visible at the same time: clearer quotes, firmer scheduling, a written guarantee. Most clients leave over surprises rather than over price.
Should I quote a fixed price or an hourly rate?
Fixed price where the scope is clear, hourly where it is not. A fixed price rewards you for working efficiently; an hourly rate protects you when nobody knows what is behind the wall.
Is the service price calculator free and private?
Yes. No signup and nothing uploaded: every figure is worked out in your browser and gone when you close the tab.
How do I make sure a quote is accurate?
Cost every part of the job separately: labor at the loaded rate including travel and setup, materials with delivery, and a share of overhead. Say what is and is not included, how long the price stands, and how changes will be priced. The last two cover most of what goes wrong between a quote and an invoice.
What should a service quote include?
The price, what it covers, what it does not, and how long it stands. Most disputes on service work are about scope nobody wrote down rather than about the number itself.
Should I show my hourly rate on a quote?
Usually not. A rate invites comparison with someone whose rate excludes overhead; a price invites comparison with the job in front of the client. Quote the price and keep the rate for your own workings.
How do I charge for a job that overruns?
Say in the quote what happens if the scope changes, and price variations as their own lines. A fixed price with no variation clause is where profitable jobs turn into arguments.
Should materials be a separate line on the invoice?
It usually helps. It shows the client what the materials cost, keeps your labor figure from looking inflated, and makes a handling percentage easy to explain.