The owner's workbench
Markup calculator for HVAC jobs
A job price starts with the real cost of the job. Enter your costs, pick a markup or a target margin, and see the price and the margin you would actually keep.
Illustrative example. Replace the numbers with your own job; empty fields count as $0.00.
Your numbers
Your results
Job cost
$2,000.00
Price
$2,800.00
Profit
$800.00
Margin %
28.57%
Markup %
40.00%
Guide: HVAC job pricing
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Formulas
- Job cost = materials + equipment or rental + (labor hours × loaded hourly cost) + subcontractor + permit and disposal + overhead
- Price from markup = job cost × (1 + markup %)
- Price from margin = job cost ÷ (1 − margin %)
- Profit = price − job cost
- Margin % = profit ÷ price
- Markup % = profit ÷ job cost
Worked example
Illustrative example. Numbers are made up to show the math; replace them with your own.
Materials $1,000.00 + labor $600.00 + other $400.00 = job cost $2,000.00.
At a 40% markup the price is $2,800.00, profit $800.00, margin 28.57%.
To keep a 40% margin instead, price = $2,000.00 ÷ (1 − 40%) = $3,333.33, a 66.67% markup.
What to include for HVAC jobs
- Equipment cost: the unit, coil, line set and any parts you buy for this job.
- Install hours: every hour on site, times your loaded hourly cost.
- A callback allowance: time and parts set aside for a return visit, so it is not free work later.
Questions owners ask
What markup should I use?
It depends on your overhead and the margin you need to keep. Pick the margin first, then price from the margin formula: price = job cost ÷ (1 − margin %). The markup that results is whatever gets you there.
Should overhead be in the cost?
Yes. Add it either as its own line or as an overhead rate per job or per hour. Otherwise the margin you see is overstated, because the job has to pay its share of rent, trucks, insurance and office time too.
How do I price a small job with a minimum?
Set a minimum charge from the cost of getting to the job plus the margin you need. Then price anything above that minimum from its cost, the same way as a larger job.
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Educational content, not tax, legal or investment advice.
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