Service Business Pricing Calculator
Stop guessing your prices. Calculate exactly what you need to charge per hour to cover your trucks, insurance, employee wages, and hit your target profit.
Your Costs
Direct Labor
Company Overhead
Truck payments, insurance, rent, software, advertising, etc.
Usually ~120 hours. Do not use 160. Subtract driving time and admin work.
What You Must Charge
You must charge the customer exactly this much per hour to cover all costs and hit your 20% profit goal.
Where does the money go?
The Danger of "Copying the Competition"
Most plumbers, electricians, landscapers, and cleaners set their prices by looking at what their competitors charge. This is a fatal mistake. Your competitor might have lower insurance costs, older trucks with no payments, or they might simply be losing money and going out of business.
How to Price a Service Business Correctly
You must calculate your Fully Burdened Hourly Rate. This includes:
- Direct Labor: What you pay the employee actually doing the work.
- Labor Burden: Taxes, worker's comp, and benefits for that employee.
- Overhead: Rent, truck payments, insurance, marketing, and office staff.
- Target Profit: The pure net profit you want the business to make.
What is Billable Utilization?
An employee works 8 hours a day, but they are not billing clients for 8 hours. They spend time driving, picking up parts, and attending meetings. If they only bill 5 hours a day, their utilization is roughly 60%. Your pricing must account for this "unbilled" time, otherwise, you will lose money.
Frequently Asked Questions
What is the Service Business Pricing?
The Service Business Pricing is a free online tool designed to help you calculate the exact hourly rate needed to cover overhead and hit target profit.
How much does the Service Business Pricing cost?
Our Service Business Pricing is 100% free to use. We do not require any signups, subscriptions, or credit cards.
Is my data safe when using this tool?
Yes. All calculations are performed locally in your web browser. We do not store or save your financial data or inputs on our servers.