Free Tool

HVAC Pricing Calculator

Calculate sell prices, factor in overhead, and generate pricing tiers instantly.

Job Parameters

$
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$
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Parts Total$2,740
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$
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Labor Total$680
20%

Lean (10%)Heavy (30%)

40%

Install (30%)Service (65%)

Recommended Sell Price

$6,840
Direct Cost
$3,420
Overhead
$684
Net Profit
$2,736

Pricing Tiers

Good
Basic Repair
$5,814
Better
Standard Solution
$6,840
Best
Premium Upgrade
$9,234

Pricing FAQ

How do I calculate HVAC selling price?

The standard formula for HVAC pricing is: (Total Direct Costs + Overhead Allocation) / (1 - Desired Margin). Direct costs include equipment, materials, and burdened labor. Overhead allocation covers your fixed business expenses.

What is a healthy profit margin for residential HVAC?

Most successful residential HVAC shops aim for 50-65% gross margin on service calls and 30-45% on equipment installations. This ensures enough profit to cover overhead (typically 15-25%) and reach a net profit of 10-20%.

How does flat rate pricing differ from time and materials?

Flat rate pricing gives the customer a guaranteed upfront price for the entire job, regardless of how long it takes. Time and materials (T&M) charges an hourly rate plus parts. Flat rate usually results in higher average tickets and happier customers because it removes price uncertainty.

What is the Good/Better/Best pricing strategy?

This strategy involves presenting three options for every repair or replacement: 'Good' (the basic fix), 'Better' (standard solution), and 'Best' (premium solution with upgrades). This psychology often leads customers to choose the middle option, increasing your average ticket size by 15-25%.

Ready to automate this?

Plenum's dynamic pricebook builds these bundles for you automatically. Update your costs once, and every price changes instantly.