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HVAC

HVAC Overtime Calculator

What overtime costs a hvac business, and whether the job still earns anything at the higher rate.

Your numbers

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Result

What the overtime costs you $322.56
What you bill for it $1,088
Gross profit on the overtime $764.94
Margin on those hours 70.3%
The overtime costs $322.56 and bills $1,088, a 70.3% margin on those hours.

Burden applies to the overtime rate as well as the base wage, which is the part most often forgotten. This does not price the hidden costs: tired crews make more mistakes, and a callback erases the margin on the hours that caused it.

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Questions

About this calculator

Should I add a premium for out-of-hours work?

If it costs more to deliver, yes, and say so up front. Customers accept an evening rate far more readily than a surprise on the invoice.

Is overtime better than hiring?

For short peaks, usually. As a permanent arrangement it is expensive, and the cost in turnover and errors does not appear in this calculation.

The formula

cost = hours x wage x multiplier x (1 + burden%)

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Estimating is the easy part

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