What is overhead and how do I calculate it?

Overhead includes rent, utilities, insurance, and administrative costs. Calculate your monthly overhead, divide by monthly billable hours to get an hourly overhead rate to add to each service.

Should I include my time in cost calculations?

Yes, always include your labor at a fair hourly rate. Even if you're the owner, your time has value that must be recovered through pricing.

How do I account for variable material costs?

Track average material usage per service over 10-20 instances. Add 10-15% buffer for waste and price fluctuations to ensure you're always covered.

Service Manager

Free Tool

Service Cost Calculator

Calculate true service costs

Calculate the true cost of delivering services

Learn more → Service Manager

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The Service Cost Calculator helps you understand the full cost of delivering each service including labor, materials, overhead, and hidden expenses. Know your true costs to price profitably.

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Quick — under 90 seconds

How to Use

1. Enter direct labor costs (time × hourly rate) 2. Add material and supply costs 3. Calculate overhead allocation per service 4. Include travel/transport costs if applicable 5. Add profit margin 6. Get your minimum service price

Benefits

Know true service costs

Price with confidence

Identify hidden expenses

Improve profit margins

Make data-driven decisions