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HVAC

HVAC Labour Rate Calculator

Your billable rate has to carry three things: what the tech costs you, what the business costs to run, and the profit you want left over. This works out all three.

Your numbers

$
%
Payroll taxes, workers' comp, insurance, benefits, paid time off, on top of the wage.
$
Everything not directly on a job: office, admin wages, software, marketing, insurance, vehicles.
techs
hrs
Not hours worked, hours you actually invoice. 1,300–1,600 is common once drive time, training and slow weeks are removed.
%

Result

Hourly rate to charge $106.37
True cost per billable hour $85.10 Burdened wage plus overhead
Burdened wage $42.24
Overhead per billable hour $42.86
A tech on $32 an hour actually costs you $85.10 per billable hour once burden and overhead are carried. Charge $106.37 to hold a 20% margin.

Billable hours is the number that moves this rate most. If your techs bill 1,100 hours instead of 1,400, your true cost per hour rises sharply, measure it before trusting the output.

Run the missed call calculator

Questions

About this calculator

What is labour burden?

Everything you pay on top of the wage: payroll taxes, workers' compensation, liability insurance, health cover, retirement contributions, paid holiday and training time. Thirty per cent or more is common in the trades.

Why are billable hours so much lower than hours worked?

A tech paid for 2,080 hours a year spends a large share of them driving, restocking, training, waiting and on unbilled callbacks. Charging as if every paid hour is billable is how contractors quietly run at a loss.

Does this work for flat-rate pricing?

Yes. Calculate the rate here, then multiply it by the standard hours in your flat-rate book to set the labour portion of each task price.

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More billable hours beats a higher rate

Unanswered calls and no-show appointments are lost billable hours. See what they cost you.