Service Price & Profit Margin Calculator

Stop guessing. Calculate the exact price you need to charge to hit your profit goals.

Job Costs & Targets
$
Total rate per hour
Hrs
Estimated time
Don't forget miscellaneous costs!

20%
We use the Gross Margin Formula (Price = Cost รท (1 - Margin%)), not Markup. If you want to keep 20% of the total price as profit, you need to charge more than a simple 20% markup.
You Should Charge

$0.00

  • Total Labor $0.00
  • Total Materials & Overhead $0.00
  • Net Profit $0.00

Ready to send this quote?

Create Free Online Estimate

How to Price Your Services for Real Profit

Pricing a job correctly is the difference between a busy schedule that barely breaks even and a profitable business that grows. Many contractors make the mistake of adding a simple percentage to their costs (Markup) and calling it profit, often realizing too late that their actual take-home pay is lower than expected. This tool uses the industry-standard Gross Margin formula to ensure that when you aim for a 20% profit, you actually keep 20% of the total invoice amount.

Calculator Instructions

Follow these simple steps to determine the right price for your next job:

  • Define Labor Costs: Enter your standard hourly rate and the estimated time the job will take.
  • Add Direct Expenses: Input the cost of materials required for the specific project.
  • Include Overhead: Don't forget hidden costs like fuel, vehicle wear-and-tear, or insurance.
  • Select Profit Margin: Use the slider to set your target profit percentage.
  • View Your Price: The tool instantly calculates the total amount you need to charge the client to meet your goals.

Create a Free Online Estimate Now!

Use WorkQuote's free Estimate & Invoice Generator to create professional quotes and invoices for your service business. No sign-up or account needed.

  • Modern Design: Create professional estimates that look great on any device.
  • Custom Branding: Add your logo and customize colors to match your brand.
  • Live Preview: See real-time updates as you create your estimates and invoices.
  • Real-Time Feedback: Know when estimates are viewed and accepted by your clients.
WorkQuote's Free Estimate And Invoice Generator

Create modern estimates that win jobs!


Organize your Business into one App with WorkQuote

Get It Now

Risk-Free Trial. No Strings Attached.

credit_card_off

No Credit Card Required

Start instantly. We don't ask for a card or any payment information.
rocket_launch

Full Feature Access

Test every feature, from unlimited estimates to scheduling, with your real jobs.
free_cancellation

Nothing To Cancel

If you don't subscribe within 21 days, your trial simply expires. No fees, no obligation.

Frequently Asked Questions

Find answers to common questions about our field service software.

This is a common observation! Most people calculate profit using 'Markup' (Cost + 20%), but this calculator uses 'Gross Margin' (Price - Cost = 20%). Margin is the industry standard because it ensures that at the end of the day, 20% of the total money in your hand is actual profit. Markup often leaves you with less profit than you planned for.

Overhead refers to the indirect costs of doing business that aren't specific materials. You should factor in a portion of your vehicle gas, insurance premiums, tool wear-and-tear, software subscriptions, and marketing costs. Even small amounts add up, and if you don't charge for them, you are paying for them out of your own pocket.

Once you have your final price, you shouldn't just text a number to your client. You can use our Free Estimate Generator to create a professional quote instantly. It looks more professional and increases the likelihood of the client saying yes.

While our free tools are great for one-off jobs, the full WorkQuote App helps you build a scalable business. WorkQuote allows you to save client details, track which estimates have been opened, automatically convert accepted estimates into invoices, and manage your entire job history in one dashboard. It is designed to help you spend less time on paperwork and more time getting paid.
Download WorkQuote for Advanced Business Tools
Includes a No-Sign-Up Guest Demo Mode.

Disclaimer & Data Policy: This free WorkQuote tool is provided "as is" without warranty of any kind. While we strive to ensure accuracy and reliability, users are responsible for verifying the information and suitability of generated data for their specific needs. WorkQuote disclaims any liability for damages arising from the use of this tool.