HVAC
HVAC Maintenance Agreement Pricing Calculator
Price a maintenance agreement from what delivering it actually costs you, then set the margin deliberately.
Result
A planning estimate, not a price. It assumes every included visit gets delivered, which is where most plans actually lose money: an unused visit looks like profit until the renewal conversation. The repair discount is treated as a real cost because it is. Revenue you have agreed to give up. Use your own burdened labour rate rather than a wage.
Open the agreements demoWhat moves the number
- Burdened labour per visit including travel, not just time on site.
- Filters and consumables included in the plan.
- Admin cost per member per year: scheduling, reminders, billing and renewal.
Where this one goes wrong
Pricing against a competitor's plan. Their price reflects their cost structure, their visit count and their inclusions, none of which you can see. Copying the number imports their economics without their business.
Questions
About this calculator
How many visits should a plan include?
Whatever the equipment and climate justify, costed before the price is set. Two is common for a single system, but the number should follow from what the equipment needs rather than from what competitors advertise.
Monthly or annual billing?
Monthly generally improves retention and cash flow; annual improves collection certainty. Either works provided the price came from the cost rather than from what sounds acceptable per month.
Should plans be a loss leader?
They can be, deliberately, if the pull-through work justifies it. That is only a strategy if you know the plan loses money and by how much.
Put this calculator on your site
Free to embed. Paste this where you want it to appear. It stays up to date automatically because it loads from BDEVY.
Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Maintenance visits included per year. Enter your own figure; the page starts at 2.
- Technician hours per visit. Enter your own figure; the page starts at 1.25.
- Burdened labour cost per hour ($). Enter your own figure; the page starts at $38.
- Parts and materials per visit ($). Enter your own figure; the page starts at $14.
- Travel cost per visit ($). Enter your own figure; the page starts at $9.
- Admin cost per member per year ($). Enter your own figure; the page starts at $18.
The result updates as you type, so you can try a figure, see what it does to recommended annual price, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Maintenance visits included per year | 2 |
| Technician hours per visit | 1.25 |
| Burdened labour cost per hour | $38 |
| Parts and materials per visit | $14 |
| Travel cost per visit | $9 |
| Admin cost per member per year | $18 |
| Repair discount offered to members | 15% |
| Expected repair revenue per member per year | $180 |
| Target gross margin | 55% |
What comes out
| Result | Value |
|---|---|
| Recommended annual price main result | $413.33 |
| Annual cost to deliver | $186.00 |
| Gross profit | $227.33 |
| Monthly equivalent | $34.44 |
Delivering 2 visits a year costs $186.00, $95.00 of labour, $28.00 of materials, $18.00 of travel, admin of admin and $27.00 of repair discount given up. To keep a 55% margin the plan needs to sell at $413.33, or $34.44 a month. That is the same thing as a 122.22% markup. Margin and markup are never the same number.
How sensitive the answer is
Holding everything else steady and changing only burdened labour cost per hour, this is what happens to recommended annual price. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Burdened labour cost per hour ($) | Recommended annual price |
|---|---|
| $19 | $307.78 |
| $29 | $363.33 |
| $38 example above | $413.33 |
| $57 | $518.89 |
| $76 | $624.44 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Maintenance visits included per year
- A number, between 0 and 12, starting at 2.
- Technician hours per visit
- A number, between 0 and 12, starting at 1.25.
- Burdened labour cost per hour ($)
- A money amount, starting at $38.
- Parts and materials per visit ($)
- A money amount, starting at $14.
- Travel cost per visit ($)
- A money amount, starting at $9.
- Admin cost per member per year ($)
- A money amount, starting at $18.
- Repair discount offered to members (%)
- A percentage, between 0 and 50, starting at 15%.
- Expected repair revenue per member per year ($)
- A money amount, starting at $180.
- Target gross margin (%)
- A percentage, between 0 and 90, starting at 55%.
What the results tell you
| Result | What it is |
|---|---|
| Recommended annual price | The headline result. A money figure. |
| Annual cost to deliver | A money figure. |
| Gross profit | A money figure. |
| Monthly equivalent | A money figure. |
Before you rely on this number
Sizing, capacity and load figures here are planning estimates. A real installation depends on the manufacturer's data for the specific equipment, the duct system it is going into, and a proper load calculation for the building. Use this to sanity-check a number or price a job, not to select equipment.
Keep going
Related calculators
HVAC Maintenance Plan Profit Calculator
See what a maintenance plan returns once the visits, the travel, the admin and the member discount are all costed.
Open calculatorHVAC Agreement Renewal Rate Calculator
See what a change in renewal rate is worth across the book, and what drives the rate up.
Open calculatorHVAC Customer Lifetime Value Calculator
Estimate what a customer relationship returns across maintenance, repairs and the eventual system replacement.
Open calculatorSee the whole agreement lifecycle
The demo runs plans, agreements, covered equipment, visit checklists, customer reports and the renewal list against a fictional contractor's book.