Free tool · for HVAC contractors
HVAC flat rate pricing calculator: price every job for real profit
Enter labor hours, burdened labor cost, parts, overhead and the profit you want. Get the flat-rate price, your margin and where every dollar goes, and avoid the markup trap that quietly loses money.
Flat-rate price for one job
| Labor cost | $90 |
|---|---|
| Parts and materials | $180 |
| Direct cost | $270 |
| Overhead share (35%) | $189 |
| Net profit (15%) | $81 |
| Price | $540 |
The markup trap: adding 50% on top of cost gives $405, which is $135 short. Overhead and profit are shares of the selling price, so the price must be cost ÷ (1 − overhead − profit).
Formula: price = direct cost ÷ (1 − overhead % − net profit %). Use your own numbers from last year’s profit and loss statement.
Markup vs margin chart
The markup on cost you need to hit a gross margin. Markup = margin ÷ (1 − margin).
| Gross margin | Markup on cost | Multiplier |
|---|---|---|
| 20% | 25.0% | × 1.25 |
| 25% | 33.3% | × 1.33 |
| 30% | 42.9% | × 1.43 |
| 35% | 53.8% | × 1.54 |
| 40% | 66.7% | × 1.67 |
| 45% | 81.8% | × 1.82 |
| 50% | 100.0% | × 2.00 |
| 55% | 122.2% | × 2.22 |
| 60% | 150.0% | × 2.50 |
HVAC maintenance agreement pricing
Maintenance agreements smooth out seasonal cash flow and keep customers coming back to you when a system needs replacing. Surveys reported by ACHR News give a sense of what the market accepts (ACHR News, 2023):
- 72% of 100 surveyed contractors offered maintenance agreements.
- 44% charged $200 a year, 29% $300 and 19% $400 or more.
- 87% of 400 homeowners were willing to pay $100–$200 a year.
- Homeowners most wanted parts discounts (80%), labor discounts (78%) and priority service (77%), with at least two visits a year.
HVAC Pro: your price book and agreements, done
Turn this calculator into a full price book and sell more maintenance plans.
- Saved flat-rate price book for every repair and install, with good-better-best options
- Price updates in one click when labor or parts costs change
- Maintenance agreement builder: branded, printable, ready to sign
- Your AC size calculator embedded without our link, sending leads to your inbox
- Monthly report of which calculator visitors asked for quotes
Questions
How do you calculate flat rate pricing for HVAC?
Add the job’s direct costs (labor hours × burdened labor cost, plus parts and materials), then divide by (1 − overhead % − target net profit %). With $270 of direct cost, 35% overhead and 15% profit, the price is $270 ÷ 0.5 = $540.
What is the difference between markup and margin?
Markup is profit as a share of cost; margin is profit as a share of the selling price. A 50% markup gives only a 33.3% margin. Overhead and profit are paid out of the selling price, so pricing must start from margin.
What overhead percentage should an HVAC company use?
Use your own: divide last year’s overhead (everything that isn’t a direct job cost, such as rent, vehicles, office staff, insurance, marketing and software) by last year’s revenue. Guessing low is the most common reason profitable-looking jobs lose money.
What is burdened labor cost?
The technician’s wage plus everything the company pays because of it: payroll taxes, workers’ compensation, health insurance, paid time off and retirement contributions, divided by billable hours.
How much should an HVAC maintenance agreement cost?
In an ACHR News survey of 100 contractors, 44% charged $200 a year, 29% charged $300 and 19% charged $400 or more. In a companion survey of 400 homeowners, 87% said they were willing to pay $100–$200 a year.