FieldCamp’s service pricing calculator is a free web-based tool that you can use to create estimates for your service business. It is a simple yet very useful tool; all you need to add are material costs, labor costs, overhead expenses, and your profit amount. You will get an accurate service price estimate, profit margin, and markup. Then add the same to our free estimating template.
Struggling with profit margins and estimations of your services? First, add material, labor, and overhead costs to our calculator. Also, include your profit amount, and you will get accurate pricing and estimation.
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A service pricing calculator is a tool developed by FieldCamp to ease your estimation work. It helps you price your services based on different costs like material, labor, and overhead costs.
Also, you have to add your profit factor to it, and you will get an accurate estimate. The estimate comprises the total price of a service with other factors like profit margin and markup.
Our motive behind developing this tool is to skip all the manual calculations involved in the process. By eliminating the use of pen-paper, you can save time and carry out service pricing quickly.
Any service comprises of below-listed costs:
Along with these costs, you have to consider the profit you are expecting from your business
To calculate labor costs, you will need the following data:
Then add all these data in the below-given formula:
Number of workers x Hours to complete job x Hourly pay
For example:
Let’s say you’re carrying out an estimation for a carpentering service. You will need 3 people to work for 7 hours to complete the job, and everyone charges $15/hour. So, the labor cost will be $315. (3*7*15)
Costs involved in a job that compensates the price of the material are known as material costs. In a job, materials are used in 2 ways: Either full or partial.
It depends on you how much you aim to earn from each job. However, the ideal profit margin is 10-15%, or a max of 20%.
Less than that would make you earn less, and charging higher can overprice your estimation, which can lead you to lose your client. So, make sure you set your profit bar such that you earn a considerable amount of profit and yet not overpricing your services.
Markup is the amount added to the material, labor, and overhead costs with an intention to earn profit over it.
For example: If the combined cost of material, labor, and overhead expenses for a job is $100, and you charge $120 for the job, then a markup of 20% will be considered.