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Flat-Rate Pricing Calculator

Work out a flat rate that covers labor, parts, overhead and the profit margin you want. Enter your own numbers and the price updates as you type.

How the calculator works

You enter seven numbers: technician hourly rate, labor burden (%), estimated hours per job, part cost, part markup (%), overhead multiplier and desired profit margin (%). The calculator then works through four steps.

  1. Fully burdened labor = hours × hourly rate × (1 + labor burden).
  2. Parts with markup = part cost × (1 + part markup).
  3. Break-even cost = (burdened labor + parts with markup) × overhead multiplier.
  4. Flat rate price = break-even cost ÷ (1 − desired profit margin). Your profit is the price minus the break-even cost.

Worked example

These are the calculator's starting values, not a pricing recommendation. A 2-hour job at $35 an hour with a 25% labor burden is $87.50 of burdened labor. A $50 part with a 30% markup is $65. With a 1.5 overhead multiplier, break-even is ($87.50 + $65) × 1.5 = $228.75. For a 20% margin, the flat rate is $228.75 ÷ 0.8 = $285.94, which leaves $57.19 of profit on the job.

Related: how plumber Stephen Jobe fixed his pricing on the way from almost bankrupt to $1.7M.

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