Direct answer
Price technician and helper hours separately, then add equipment, permits, startup, travel and warranty reserve; equipment sizing remains outside the model.
| Figure | Source |
|---|---|
| Numbers shown on this page | Fictional worked example; not a market benchmark |
| Formula and definitions | Serman Tools method stated on this page |
| Your quote or operating result | Your verified business inputs |
Separate skilled and supporting labor
Technician and helper hours can have different true hourly costs and different availability constraints. Price each role independently rather than using a single blended wage.
Include commissioning, startup and documentation labor in the hours or as a separate allowance, but not both.
Keep equipment and startup visible
Installed equipment and materials often dominate the invoice, while permits, disposal, travel and startup remain job-specific. Separate lines show which assumption changed and whether a supplier or scope revision caused the variance.
Refrigerant, recovery, disposal and other regulated work must follow the applicable technical and regulatory requirements; the pricing model does not determine them.
Fictional worked example
Assume eight technician-hours at $48, eight helper-hours at $28, $2,700 of equipment, $100 of permit cost, $75 of startup, $45 of travel, a 3% equipment warranty reserve and $100 of overhead.
Base cost is $3,709. A 5% contingency produces true cost of $3,894.45. At a 30% target margin, the planning price is $5,563.50.
Model warranty reserve on the right base
A warranty reserve applied to equipment should not also be applied to the same amount through a broad job contingency without intent. Define what each reserve covers, then compare it with actual return cost by job type.
Separate labor callbacks from supplier-covered equipment when the business tracks them differently.
Compare replacement and repair economics
Replacement, maintenance and repair work have different equipment, travel, diagnosis and callback patterns. Store separate assumptions and compare profit per person-hour as well as total job profit.
Frequently asked questions
Does the calculator select equipment size?
No. It models pricing inputs only and does not perform load calculations, equipment selection or code checks.
Should warranty reserve apply to labor?
Use the reserve basis that matches your historical policy and data. Keep labor and equipment reserves separate when that distinction matters.
Where does commissioning time go?
Include it in technician/helper hours or a specific startup allowance, but do not count the same work twice.
Can the result be used as a flat-rate price?
It can inform a flat price after scope and technical requirements are verified, but it is not a market-rate or outcome guarantee.
RUN THE NUMBERS
Use your own costs before you quote.
Start with the free HVAC Job Pricing Calculator. The Home Service Pricing Workbook keeps the related workflow in a downloadable workbook.
Planning and estimation only. No price, rate, revenue, profit or business outcome is guaranteed.