Calculator

Service Pricing Calculator

Build a service quote from labor, materials, overhead, target margin, and expected discount pressure. This is the practical version of the service pricing guide when you need a number you can actually send.

Turn delivery hours into a defendable quote
Include negotiation pressure before you send the price
Keep margin goals visible while building the quote

Calculate a service quote

Start with labor, direct delivery cost, materials, and extra overhead. Then set the target margin you need after any expected discount so the quote still works once real negotiation starts.

Labor hours Billable delivery time for the service. Delivery cost per hour Internal cost of labor or contractor time per hour. Materials or subcontractors Direct pass-through or purchased delivery inputs. Extra overhead and fees Travel, tooling, admin, payment fees, or setup overhead. Target margin % Desired margin after the expected discount is applied. Expected discount % Likely negotiation or promo pressure on the quote.

Three common service quote scenarios.

Formula

How to calculate a service quote that survives discount pressure

Cost base = (Labor hours × Delivery cost per hour) + Materials + Overhead

Recommended quote = Cost base / ((1 - Target margin / 100) × (1 - Expected discount / 100))

If the cost base is $500, the target margin is 30%, and the expected discount is 10%, divide $500 by `0.70 × 0.90`. That gives a recommended quote of about $793.65 so the deal can still land at $714.29 after discount and preserve the target margin.

Where it helps

Quoting projects where hours, materials, and negotiation pressure all matter.
Setting a service price floor before sending proposals or retainers.
Checking whether a “round number” quote still leaves enough room.

Useful next step

Once the quote is built, pressure-test the final number with discount, margin, and contribution tools so the service line stays healthy after negotiation.