Service Call Price Calculator

Plug in time on the job, parts cost, overhead allocation, and target margin. See a defensible quote you can give a customer with confidence.

Inputs

Suggested price

Labor cost $80
Overhead allocation $50
Parts (with markup) $168
Total cost basis $250
Quote the customer $375
Implied net margin 20.0%

How the math works

The calculator builds a price bottom-up:

  1. Labor cost = fully-loaded wage × hours on job. Loaded means wage + payroll tax + workers' comp + benefits — typically 1.2× to 1.4× the bare hourly wage.
  2. Overhead allocation = overhead per hour × hours on job. This is your truck, fuel, insurance, software, office time — divided across billable hours.
  3. Parts with markup = parts cost × (1 + markup %). Typical contractor markups on parts run 30-100% depending on trade and item.
  4. Total cost basis = labor + overhead + parts-with-markup.
  5. Customer quote = total cost basis ÷ (1 − target margin). Reverse-engineering the price that hits your margin target.

Common mistakes that under-price service calls

  • Using bare hourly wage as labor cost. A tech making $30/hour costs you $36-$42/hour all-in. Charging based on $30 means you're losing on every hour.
  • Forgetting travel time. The 30-minute drive each way is part of "time on job" — it's hours your tech can't spend on another call.
  • Ignoring overhead. The truck, the insurance, the software, and the office aren't free. If you don't allocate them per hour, the year-end P&L will surprise you.
  • Discounting from gross. A "10% off" discount on a 20%-margin job leaves you at 11%. Two of those a week and you're working for free.

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