Flat rate pricing calculator for HVAC, plumbing and electrical
A flat rate price is your billable hour rate times the task time, plus the part at your markup. The billable hour rate comes from your yearly costs divided by the hours you really bill, then a profit margin on top. Enter your own numbers to get the rate and one task price.
On this page
Flat rate price for this task$445
- Billable hour rate
- $220.59
- Break-even per billable hour
- $187.50
- Billable hours per year
- 4,160 hours
- Labor in this task
- $330.88
- Part at your markup
- $114.00
Runs in your browser. Nothing you type is sent or saved. The result is an estimate from your own inputs, not a quote.
How the flat rate calculator works
- Billable hours = technicians x paid hours x weeks x billable efficiency.
- Break-even per hour = yearly costs / billable hours.
- Billable hour rate = break-even / (1 minus margin). A 15% margin divides by 0.85.
- Task price = rate x task time + part cost x markup multiple.
Billable efficiency is the number most shops overestimate. Drive time, callbacks, training and shop time are paid but not billed. Pull it from your own timesheets against invoiced hours.
Why margin is not markup
A 15% margin means 15% of the price is profit. Adding 15% to cost gives only a 13% margin. This calculator uses margin. To convert between the two, use the markup vs margin calculator.
Keeping the price book current
A price book goes stale when supplier prices move and nobody updates the entries. Alvin can check part costs in your supply-house accounts and draft the updated entries for you to approve, so the owner still sets every price. The trade guides go deeper: HVAC flat rate pricing and plumbing flat rate pricing.
Frequently asked questions
How do I calculate a billable hour rate?
Add up a year of costs other than parts, divide by the hours you actually bill customers, then divide by one minus your target profit margin. With the example numbers above the break-even is about $187.50 and the rate at 15% margin is about $220.59.
What is a good billable efficiency for service techs?
It varies widely by trade, drive distances and how the day is dispatched. Measure your own: invoiced labor hours divided by paid technician hours over a few months.
Should parts be marked up in flat rate pricing?
Yes. The markup covers ordering, stocking, warranty handling and the truck inventory. Many shops use a sliding scale with a higher multiple on cheap parts and a lower one on expensive equipment.
The math is the easy part. Alvin does the office work after it.
Alvin is the personal assistant for home services businesses. Your team asks in the app or forwards an email, and Alvin does the work across QuickBooks, your CRM and your suppliers. Anything that spends money or goes to a customer waits for your approval.