Free Service Pricing Calculator for Contractors

Job Details

Labor Hours

hrs

Total hours for this job

Labor Rate

$/hr

Your cost per hour

Material Costs

Parts, supplies, and materials for this job

Overhead Percentage

Insurance, vehicle, tools, office (typically 10-20%)

Desired Profit Margin

Percentage of selling price you want as profit

Pro Tip: Include drive time and setup in your labor hours. A 4-hour on-site job might actually take 6 hours of your day. ThePocketBoss tracks this automatically with job timers.

How to Price Any Contractor Service

The Cost-Plus Pricing Formula

The most reliable pricing method for service contractors is cost-plus: add up all your costs (labor, materials, overhead), then add your desired profit margin on top. This calculator does that math for you and ensures every job covers its costs.

Don't Forget Hidden Labor Costs

Drive time: 30 minutes each way is an hour of your day
Setup and cleanup: Loading the truck, site prep, post-job cleanup
Estimate time: The hour you spent writing the quote
Follow-up calls: Scheduling, rescheduling, customer updates
Material runs: Trips to the supply house mid-job

When to Price Higher Than the Calculator Suggests

This calculator gives you a minimum profitable price. You should charge more when the job is urgent, requires specialized skills, involves difficult access, or the customer is comparing you against contractors with much higher overhead.

How ThePocketBoss Makes Pricing Faster

ThePocketBoss lets you create estimate templates for your most common services. Set your standard rates and materials once, then generate accurate quotes in minutes instead of hours. Track actual costs to refine your templates over time.

Frequently Asked Questions

What profit margin should I use for service work?

Most service contractors target 20-30% profit margin. Higher-skill specialty work can command 30-40%. Simple maintenance work typically falls in the 15-25% range.

Should I charge differently for residential vs commercial?

Yes. Commercial work often has higher overhead requirements (insurance, compliance, safety gear) and longer payment cycles, so you should price higher to compensate. Your margin should be at least the same or better than residential.

How do I handle material price fluctuations?

Add a 5-10% material buffer to your estimate. Include a clause that material costs are valid for 30 days. Track your actual material costs in ThePocketBoss to spot trends and update your estimates.

What's the difference between this and the profit calculator?

The profit calculator works backward from a price to show margin. This calculator works forward from your costs and desired margin to recommend a price. Both give you the same answer - just from different starting points.

Service Pricing Calculator