Turn one task’s standard time, your billable rate and its parts into an up-front price — built the same way every time, with the floor it must never go under drawn in red.
1Your task price
Example task: 1.5 standard hours at the example shop’s $125.20 rate, $85 of parts. Your parts markup finishes the price — the tool has no default.
Last step: your parts markup. Labor and parts at cost come to $272.80; your markup finishes the price.
Price and cost, side by sideDrawn to scale: every dollar the same height
Price
1Labor at your rate1.5 h × $125.20$187.80
2Parts at cost$85.00
3Parts markup — enter yours
Cost
4Labor cost1.5 h × $66.07$99.11
5Overhead + truck1.5 h × $46.61$69.92
6Parts$85.00
Margin floor
$254.02full cost
Labor part
$187.801.5 h × $125.20
Parts
$85.00at cost, before markup
(1.5 h × $125.20)+ $85.00 × (1 + your markup)
Already showing the example.
If you also charge a trip or service-call fee, don’t build the drive into the standard hours as well.
How the math works
The rate method builds the price from your billable rate, which already carries overhead, the truck and profit — so no overhead line is added on top. The margin method starts from full cost instead. Both use your own standard hours: the site publishes no task times and no task prices.
Labor partstandard hours × your billable rateExample: 1.5 h × $125.20 = $187.80.
Parts partparts cost × (1 + your markup)Example only: $85 at 50% = $127.50. The tool has no default markup.
Callback allowance(labor part + parts part) × allowance %Default 0%. Roughly your callback rate × (average callback cost ÷ average ticket). Example: 2%.
After hours× the multiplierA pricing choice. Example: $321.61 × 1.5 = $482.41 (full precision is kept inside), rounded up to $485.
Round upto the next $1 (or $5, $10)Example: $321.61 → $322. Full precision inside; only shown figures are rounded.
Margin methodmargin floor ÷ (1 − target net margin)Example at 10%: $287.89. Lower than the rate method’s $322, because it puts one margin on everything instead of profit on labor plus a markup on parts.
Where the example numbers come from
Billable rate
$125.20 an hourLabor rate calculator, example shop (BLS, IRS, DOL and AAA defaults; $120,000 overhead is an editorial example)
Loaded labor cost
$66.07 per billable hourLabor rate calculator, example shop
1.5 h · $85Editorial example — not a task time or a parts price from any price book
Parts markup
NoneRequired: no source gives a typical markup, so the tool supplies none
Callback allowance
0%Editorial choice (no source for a typical callback rate), 2026-10-04
After-hours multiplier
×1Editorial choice (1 = normal hours), 2026-10-04
Rounding
Up to the next $1Editorial choice, 2026-10-04
Target net margin
10% of the priceServiceTitan blog (software vendor), low end of "10–20% healthy", July 2026
Before you use the number
Standard hours must come from your own job history. The tool has no task times, and the site publishes none.
With flat rate, the shop carries the time risk: a job that runs long costs you, not the customer (Workiz, a software vendor). Track actual against standard hours and update the book.
The rate already contains overhead and profit. Adding an overhead allocation on top of a fully loaded rate, as some published formulas do, counts it twice.
The two methods give different prices because the rate method earns profit on labor and a markup on parts, while the margin method applies one target margin to everything.
After-hours multipliers are a pricing choice. Federal law requires overtime pay only for hours over 40 in a workweek — not for weekends or holidays as such — and does not require extra pay for night work. Consumer guides describe emergency pricing at about 1.5 to 3 times normal; that is a rule of thumb, not a standard.
Parts prices change. Re-price tasks when supplier costs move.
Sources
Opened and checked October 4, 2026. Software vendors are labelled as such; the worked examples are the site’s own arithmetic.
Build a flat-rate price book from your own numbers: task list, standard hours, billable rate, parts markup, callback allowance, price tiers and upkeep.
A flat parts multiplier and a sliding markup scale compared: the margin each really leaves, the tier-boundary trap, and how sales tax changes the base.
$10.01 × 1.75 = $17.52
Length
7 min
Updated
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