How to use it
- 1
Enter the wage and payroll burden
Start with what you pay the technician per hour. Add payroll taxes, workers' compensation, benefits, paid time off and training as a percentage; 30–50% is normal. The result is the loaded labor cost, the real cost of an hour of that person's time.
- 2
Spread overhead over billable hours
Total your monthly fixed costs (rent, vehicles, insurance, software, phone, marketing, admin wages and your own salary) and divide by the hours you actually invoice in a month, not the hours worked. Drive time, quoting and callbacks are not billable, which is why most shops bill only 50–65% of paid hours.
- 3
Add this job's hours and materials
Enter labor hours and the cost of parts. Mark materials up 25–50% to cover procurement, stocking, warranty and returns.
- 4
Set the margin and read the price
Total cost divided by (1 − target margin) is the price. A 20% margin on a $600 cost job is $750, not $720. The panel also shows your break-even rate per labor hour, the number you must never quote below.
Read the method behind this tool: How to price service jobs for profit.