Labor Rate Calculator for Service

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Step 1: Standard Hourly Costs
Technician Pay Per Standard Hour
Direct Expenses Based on Compenstation
Direct Labor Cost Per Standard Hour

Step 2: Lost Days
Total Hours Available (no overtime)
Number Paid Vacation Hours
Number of Paid Holidays (in hours)
Number of Paid Sick/Personal Hours
Productive Hours Available
Non-Billable Hours (unproductive time)
Billable Hours
Adjusted Direct Labor Cost Per Billable Hour

Step 3: Vehicle Costs
A commercial vehicle costs a lot to operate. According to recent research performed by Aptora and Mr. HVAC, it costs about 98.6 cents per mile to operate a standard-sized commercial van. The internet should have information on this topic, so we encourage you to do your own research. Otherwise, consider using $1.00 per mile.
Miles Driven Per Year
Cost Per Mile
Total Vehicle Cost Per Year
Vehicle Cost Per Billable Hour
Cost of Technician and Truck (no overhead)
Adjusted Direct Labor Cost Per Billable Hour
Vehicle Cost Per Billable Hour
True Direct Cost Of Labor

Step 4: Add for Department Overhead and Profit
Enter Other Department Overhead as % of Sales
Add for Net Profit Before Taxes
This is your LOWEST Hourly Labor Rate
You may need to charge more to make up for lower-priced travel and diagnostic fees. You will need to charge more to make up for service agreements or other discounts.
Your Labor Markup

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