Enter the materials cost ($), the labor cost ($), and the desired margin (%) into the Service Price Calculator. The calculator will evaluate and display the Service Price.

Service Price Formula

The following formula is used to calculate the Service Price.

SP = (MC + L) / (1-DM/100)
• Where SP is the Service Price ($) • MC is the materials cost ($)
• L is the labor cost ($) • DM is the desired margin (%) To calculate a service price, add the material costs and labor costs, then divide by 1 minus the desired margin. How to Calculate Service Price? The following example problems outline how to calculate Service Price. Example Problem #1 1. First, determine the materials cost ($).
1. The materials cost ($) is given as 250. 2. Next, determine the labor cost ($).
1. The labor cost ($) is calculated as: 250. 3. Next, determine the desired margin (%). 1. The desired margin (%) is found to be: 30. 4. Finally, calculate the Service Price using the formula above: SP = (MC + L) / (1-DM/100) Inserting the values from above yields: SP = (250 + 250) / (1-30/100) = 714.28 ($)

Example Problem #2

The variables needed for this problem are provided below:

materials cost ($) = 50 labor cost ($) = 50

desired margin (%) = 70

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.