Service Price Calculator

Calculate a profitable service price from estimated hours, internal cost, overhead, and target margin.

Inputs

Estimated delivery time for the service or project.

Labor cost per hour before profit margin.

Tools, software, admin, contractors, or delivery expenses.

Desired margin after labor and overhead costs.

How it works

  1. 1. Estimate hours

    Start with the time required to deliver the work.

  2. 2. Add costs

    Include labor cost and any overhead tied to delivery.

  3. 3. Price for margin

    Convert cost into a service price that preserves profit.

Frequently asked questions

How is service price calculated?

The calculator multiplies billable hours by internal hourly cost, adds overhead, then divides by the percentage left after the target margin is reserved.

What should I include in overhead?

Include costs tied to delivery, such as software, admin time, contractors, tooling, travel, or any non-labor expense required to finish the service.

Why calculate effective hourly rate?

Effective hourly rate shows what the final service price earns per delivery hour, which helps compare fixed-fee work against hourly billing.