Flat Rate Math

HVAC Hourly Rate Calculator

HVAC is a heavier overhead trade than most one-van shops admit. The van carries more than an electrician's: recovery machine, vacuum pump, gauges and meters that need calibration, a refrigerant inventory, and a bigger insurance bill because you work on gas and electrical at once. Then there is the seasonality: the phone rings in July and January, and the shoulder months are quoting, maintenance plans and unpaid drive time.

Typical overhead for a solo shop lands around $30,000 a year before any job. Billable share is usually 50% to 60% in season and lower across the year. Customers compare your rate to the big franchise trucks, whose rates are higher than yours and whose overhead is far higher - so the gap you feel is not a reason to undercut.

Worked example: $31,500 of overhead, an $85,000 salary target with 20% burden, 48 weeks at 50 hours with 55% billable. That is 1,320 billable hours, a true cost of $101.14 an hour, and with 15% margin a rate of $118.98 - round up to $120. Your numbers go in below; the defaults are a starting point, not a verdict.

Overhead$31,500
Salary target + 20% burden$102,000
Billable hours (48 wk x 50 h x 55%)1,320
True hourly cost$101.14
With 15% margin$118.98
Shop rate (rounded up to $5)$120

1. Overhead - what it costs to exist for a year, before any job

Yearly amounts. Rough is fine; you can tune it later in the spreadsheet.

2. You - what you should be paid

3. Time - hours you can actually bill

Questions HVAC techs ask

Should I price maintenance visits at the same hourly rate?

Price them from the same rate, then set a flat maintenance price that covers a realistic visit length plus drive time. Selling the visit as a flat number is easier than defending an hourly figure on a short job.

How do I handle refrigerant and parts in the rate?

Keep them out of the hourly rate and mark them up separately (25% to 50% on standard parts, less on big-ticket equipment). The rate covers your time and overhead; materials carry their own margin.

Is there an HVAC version of the flat-rate price book?

It is next in line. Use the calculator, then leave your email and tell us your trade - the trade with the most requests gets built first.

Next step

The HVAC price book is on the build list. Run the calculator, leave your email above and tell us your trade - the trade with the most requests gets built first.

Read: How to build a flat-rate price book for a small HVAC shop

Other trades: Electrician, Plumber, Handyman, Landscaper, Pressure Washing, Mobile Detailing. Or use the generic rate finder.