Free calculator

Flat-rate price builder

Build a flat-rate task price from your parts cost and labor time, then see whether it actually hits the gross margin you want, at full price and at member price.

Your numbers

Every default is an example, not an industry figure. Replace it with yours. Everything stays in your browser.

What you pay for the parts on this task, including tax and freight if you pay it.

Markup is added on top of cost: 60% turns $120 of parts into $192.

Typical time on site to do the task, from your own jobs.

What one billable hour costs you: tech pay and burden plus overhead per billable hour. Use your own number from your books.

Gross profit as a share of the price. Capped at 95%.

Discount members get on repairs. Set to 0 if you don’t offer one.

Markup vs margin

Markup is profit as a share of your cost. Margin is profit as a share of the price. They are not the same number.

Example: parts that cost you $100, marked up 50%, sell for $150. That’s $50 of profit: 50% of cost (markup) but only 33% of the price (margin).

To get a margin you want, use markup = margin ÷ (1 − margin). A 50% margin needs a 100% markup; 60% needs 150%.

How we calculate it

  1. Parts price = parts cost × (1 + markup)
  2. Labor cost = labor hours × hourly cost
  3. Labor price = labor cost ÷ (1 − target margin)
  4. Suggested task price = parts price + labor price
  5. Gross profit = price − (parts cost + labor cost); gross margin = gross profit ÷ price
  6. Member price = suggested price × (1 − member discount)
  7. Price for target margin on the whole job = (parts cost + labor cost) ÷ (1 − target margin)
  8. Your parts markup as a margin = markup ÷ (1 + markup)

Gross margin here only counts the costs you enter. Your hourly cost needs to include overhead for the result to mean much; if it’s just wages, the margin will look better than it is.

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