Worked example
Enter two cleaners for three hours each, $25 true labor cost, $25 supplies, $20 travel, $10 equipment, $100 overhead, 5% reserve, 30% margin and a 10% recurring discount. The model shows true visit cost and prices before and after discount.
| Result | Calculated value |
|---|---|
| True job cost | $320.25 |
| Break-even price | $320.25 |
| Target selling price | $457.51 |
| List price before recurring discount | $508.35 |
These are fictional defaults for explaining the calculation, not a price or outcome claim.
How the calculation works
The target selling price is the discounted price needed to retain the chosen margin. The displayed list price is grossed up before the recurring discount.
Read the related Serman Tools guide for definitions, limits and another worked example.
Workbook
The free calculator handles one scenario in your browser. Home Service Pricing Workbook keeps the related model in a downloadable workbook.
Frequently asked questions
Should a recurring discount reduce margin?
The calculator grosses up the list price so the discounted target price preserves the selected planning margin.
Do travel minutes belong in labor hours?
Include paid travel in labor or as a separate cost, but do not count it in both places.
Is this a local price benchmark?
No. It uses your cost and margin assumptions and does not claim a prevailing local selling price.
Should labor use person-hours?
Yes. Count each worker’s time so crew size and elapsed time translate into total labor consumed.
How should callbacks be handled?
Use a documented reserve based on your own history and do not count the same expected cost in contingency twice.
Can I use the result as a final quote?
Use it as a planning check, then verify scope, taxes, permits, technical requirements and job-specific risk.