TheJobNumbers

HVAC Job Pricing Calculator: build a defensible flat-rate price

A flat-rate HVAC price = (parts + misc materials + burdened labor) grossed up for overhead, then divided by (1 − margin) so the margin you target is the margin you keep. A capacitor swap with $40 in parts and 1.5 burdened hours doesn't sell for $150 — this tool shows why.

Flat-rate price for this hvac job

$536

Materials incl. 8% misc
$259.20
Labor — 2.5 hrs @ $42/hr burdened
$105.00
Loaded cost incl. 25% overhead
$455.25
Net profit at 15% margin
$80.34
Effective billed rate
$214/hr

Margin is applied divide-style (price = cost ÷ (1 − margin)), so the margin you set is the margin you actually keep — the #1 flat-rate mistake is multiplying by (1 + margin) and keeping less than you think.

How this calculator works — the formula

loaded cost = (parts × (1 + misc%) + hours × burdened rate) × (1 + overhead%)

flat-rate price = loaded cost ÷ (1 − margin%)

The divide-by-(1 − margin) step is the part most shops get wrong. Multiplying by (1 + 15%) on a $500 loaded cost yields $575 and only a 13% realized margin; dividing by 0.85 yields $588 and a true 15%. Small difference per ticket, thousands per year.

Questions contractors actually ask

What margin should HVAC repairs target?

Service and repair work commonly targets 12–25% net margin after real overhead recovery — replacements run tighter on margin but bigger on dollars. If your computed flat rates come out above local market, the fix is usually overhead (too high) or burden (underestimated), not the margin.

Should I price HVAC by the hour or flat-rate?

Flat-rate, for service work. Customers accept a firm number better than an open clock, and your speed becomes profit instead of a discount. Build each task's price here from parts + burdened hours, then publish the book price.

What burdened labor rate should I use?

Your tech's true hourly cost — wage × 1.35–1.70 once employer taxes, comp, and benefits are spread over productive hours. Run the labor burden calculator first; using the paycheck wage here is the #1 way shops underprice service.

The Job Numbers Weekly

Get the 2026 hvac rate sheet for your region — free, from our verified data.

Signups open at launch. One email a week: price changes, material deltas, one calculator. No vendor spam. What’s in the Weekly →

Keep going