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 Calculator

Enter your job costs and desired profit margin to get a recommended service price.

Enter your costs and margin, then click Calculate to see your suggested price and profit breakdown.

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.