HVAC Labor Rate Calculator
Calculate the ideal billable labor rate for your HVAC techs. Factors in wages, benefits, overhead & profit goal.
Enter your costs to find your true cost-of-doing-business and ideal billable rate.
Your break-even rate is the minimum charge per billable hour to cover all costs with zero profit. Use the CODB tab to calculate this — it's your pricing floor.
(Total Tech Cost + Overhead) / Billable HoursIdeal Rate =
Break-Even / (1 − Target Profit %)Why Every HVAC Owner Needs to Know Their True Labor Cost
A technician paid $25/hour actually costs your business $80–$95+ per billable hour once you factor in benefits, taxes, overhead, vehicle costs, and non-billable time. Billing rates need to be $100–$150+/hour to cover true costs and generate profit.
Understanding Billable Efficiency
A tech working 40 hours/week does NOT produce 40 billable hours. Most techs bill only 2.4 hours per 8-hour day (30%). Improving efficiency from 30% to 40% can increase revenue per tech by 33% — without a single new customer.
| Efficiency Rate | Billable Hrs/Year | Revenue @ $125/hr | Performance Level |
|---|---|---|---|
| 30% | 583 | $72,875 | Average |
| 40% | 778 | $97,250 | Good |
| 50% | 972 | $121,500 | Outstanding |
FAQ: HVAC Labor Rate & Job Costing
You know your rate. Now get the calls.
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