Service Pricing Calculator
Enter your business costs, target profit, and job details to find out exactly what you should charge — and never underprice a job again.
Your Business Costs
$
$
This Job
$
Adjustments
Your Results
Recommended Service Price
—
Enter your numbers above
Min. Safe Price
—
break-even
Est. Profit
—
on this job
Effective Rate
—
per hour
Profit Margin
—
of price
Why Service Businesses Undercharge
How the Price is Calculated
Your service price is built from your hourly cost rate, applied to job hours, plus direct job expenses — then adjusted for overhead and your target margin.
Hourly Cost = (Expenses + Target Profit) ÷ Hours/Month
Base = Hourly Cost × Job Hours + Job Costs
+ Overhead Buffer %
+ Desired Profit Margin %
Base = Hourly Cost × Job Hours + Job Costs
+ Overhead Buffer %
+ Desired Profit Margin %
The Hidden Cost Problem
Most owners only think about labor when pricing a job. But fuel, software subscriptions, insurance, unpaid admin hours, and unexpected delays all eat into your profit.
True Cost = Labor + Overhead + Direct Costs
≠ Labor alone
≠ Labor alone
What happens when you underprice your services
- You work harder for less. More jobs at low prices means more stress, more hours, and still not hitting your income goal.
- Overhead silently kills margins. Fuel, software, insurance, and unpaid admin time often add 15–30% to your real cost — most owners ignore it entirely.
- Clients don't reward low prices with loyalty. Price-sensitive clients switch for $50. Clients who value quality stay and refer others.
- You can't grow without margin. Hiring help, buying equipment, or marketing all require profit. Razor-thin margins trap you at the same size forever.
- A higher price signals professionalism. In service businesses, price is a quality signal. Underpricing can actually cost you premium clients.
Real-World Pricing Examples
| Business Type | Job Description | Est. Hours | Suggested Price |
|---|---|---|---|
| House Cleaning | 3-bedroom deep clean | 4 hrs | $280–$380 |
| Landscaping | Full lawn service + edging | 3 hrs | $210–$290 |
| Handyman | Bathroom fixture replacement | 2.5 hrs | $175–$250 |
| Marketing Consultant | Strategy session + report | 5 hrs | $600–$900 |
| Graphic Designer | Logo design project | 8 hrs | $800–$1,400 |
| General Contractor | Deck repair + staining | 12 hrs | $1,400–$2,200 |
Common Questions
The minimum safe price is your break-even point — it covers all your costs but leaves zero profit. The recommended price adds your overhead buffer and desired margin on top, so you're actually building toward your income goals.
10–20% is a good starting range for most service businesses. If your work involves significant travel, unpredictable project scope, or frequent small unexpected costs, go closer to 20–30%. Never set it to 0% — surprises always happen.
Any cost you'll directly incur for this specific job: materials, supplies, subcontractor fees, permit costs, or extra travel expenses beyond your normal commute. Do not include your regular monthly overhead here — that's already covered by your monthly expenses input.
Count only hours you'll actually be paid for — not admin time, quoting, invoicing, or downtime. A common mistake is entering 160 hours (full-time) when only 80–100 hours will be truly billable. Using realistic billable hours gives you a more accurate price.
Service businesses typically target 20–40% net profit margin. Solo operators often aim for 30%+. Businesses with employees or high overhead may settle for 15–25%. Below 10% is a warning sign — the business has little cushion for slow periods or unexpected costs.
Not automatically. The calculator shows you what you need to charge to hit your goals. If the number feels high, the first question to ask is whether your expenses and target profit are realistic — not whether to cut your price. Underpricing is the most common financial mistake service businesses make.