Service Pricing Calculator
Calculates an accurate service price by adding labor, materials, overhead, and desired profit margin
Direct labor cost per job or service
Cost of materials or supplies per job
Percentage of indirect costs (rent, utilities, admin)
Target profit margin as a percentage of the service price
Combined labor, materials, and overhead cost per job
The price to charge to achieve your desired profit margin
Your profit on each completed job
Frequently Asked Questions
How do I price a service?
Start by calculating your total cost (labor + materials + overhead). Then add your desired profit margin. The formula is: Price = Total Cost / (1 - Profit Margin %). This ensures your price covers all costs and delivers your target profit.
What profit margin should I target for services?
Service businesses commonly target 15-30% net profit margins. Professional services (consulting, legal, accounting) often achieve 25-40%. The right margin depends on your market, competition, and the perceived value of your service.
Should I include overhead in my service price?
Yes. Overhead (rent, utilities, insurance, admin time) is a real cost of delivering your service. If you only price based on direct labor and materials, you will undercharge and struggle to cover your full operating costs.
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