How It Works
Three simple steps to get accurate calculations
1
Enter Parts & Markup
Input your average parts cost and markup percentage to calculate parts revenue.
2
Set Labor Rates
Define hours per call and your hourly rate to establish labor revenue.
3
Add Operating Costs
Include truck roll, diagnostic fees, warranty callbacks, and monthly overhead.
4
Analyze Margins
Review profit per call, margin percentage, and minimum pricing floor.
Loading HVAC Service Call Margin Calculator...
Frequently Asked Questions
What parts markup should HVAC companies use?
Most successful HVAC companies use 50-100% markup on parts. Standard is 65-75%. OEM parts can command higher markup (80-100%) while commodity items may be lower (40-60%). Your markup should cover handling, warranty, and inventory costs.
How do I calculate my HVAC labor rate?
Start with tech wages ($20-35/hr), add burden (30-40% for benefits, taxes), then multiply by 2.5-3x for billable rate. For $30/hr tech cost, billable rate is $75-90/hr. Market rates range $85-150/hr depending on region and specialization.
What should a diagnostic fee cover?
Diagnostic fees ($75-125) should cover truck roll, first 30 minutes of labor, and basic diagnostic time. It's your hedge against no-sale calls. Most apply this to repair cost if customer proceeds.
How do warranty callbacks affect HVAC profits?
Each callback can cost $50-150 in labor and travel. A 10% callback rate means 10% of your profit disappears. Top operators keep callbacks under 5% through quality work, proper diagnosis, and tech training.
What's a healthy profit margin for HVAC service?
Target 25-35% net profit margin on service calls. Maintenance agreements can be 40-50%. If below 20%, raise prices or cut costs. Installation work typically has lower margins (15-25%) but higher dollar amounts.
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Results are estimates for informational purposes only. Consult professionals for important decisions.