Worked example
Enter eight technician-hours at $48, eight helper-hours at $28, $2,700 equipment, $100 permit, $75 startup, $45 travel, 3% equipment warranty reserve, $100 overhead, 5% contingency and a 30% target margin.
| Result | Calculated value |
|---|---|
| True job cost | $3,894.45 |
| Break-even price | $3,894.45 |
| Target selling price | $5,563.50 |
| Planned profit at target price | $1,669.05 |
These are fictional defaults for explaining the calculation, not a price or outcome claim.
How the calculation works
Technician and helper labor remain separate. The warranty reserve applies to equipment and materials, while permit, startup and travel stay explicit.
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
Does this size HVAC equipment?
No. It does not perform load calculations, equipment selection, refrigerant checks or code review.
Where does commissioning time go?
Include it in labor hours or a separate startup allowance according to your estimating method, but not both.
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.