Free service pricing calculator
Know what a job costs. Add your target margin and find a price that covers the work.
- Free, no account
- Stays in your browser
Planning estimate only. Prices exclude VAT and sales tax. Profit is relative to the costs you entered, not guaranteed business profit or take-home pay. Changing currency does not convert values.
How do you price a service?
Add labour, direct expenses and a share of overheads, then divide that cost by one minus your target margin. This gives a cost-based price for a defined service. It is a starting point for a pricing decision: compare the result with your scope, capacity, client value and market before making an offer. It does not predict demand or choose a margin for you.
| Calculation | Formula | Worked example |
|---|---|---|
| Labour | Service hours × internal hourly cost | 8 hours × 30 = 240 |
| Overhead allocation | Monthly overheads ÷ monthly productive hours × service hours | 1,200 ÷ 120 × 8 = 80 |
| Service cost | Labour + direct expenses + allocated overheads | 240 + 60 + 80 = 380 |
| Target selling price | Service cost ÷ (1 − target margin ÷ 100) | 380 ÷ (1 − 20 ÷ 100) = 475; profit = 95 |
From a service price to getting paid
Send a quote your client accepts online. Turn it into an invoice without typing it again, and let them pay it online.
INV-0143
From quote Q-0087, accepted on Oct 30Calculate a service price in three steps
- 1Estimate the workEnter total person-hours, your internal hourly cost and any job-specific expenses. Include preparation, delivery and agreed revisions.
- 2Share out overheadsEnter monthly overheads and realistic productive hours for the same business scope. The calculator assigns this job its share by time.
- 3Review and quoteChoose a target margin, compare an existing price if useful, then copy the summary. Check the scope before entering the final amount in a quote.
Before you send the price
- Count your own timeYour time is a delivery cost even when you do not pay yourself an hourly wage. Include a realistic allowance for your work. The remaining profit is separate from this pay.
- Count each cost onceIf payroll contributions are in your hourly labour cost, do not add them again as overhead. If subcontracting is a direct expense, do not also include the same work in labour.
- Use realistic productive hoursA 160-hour working month is not necessarily 160 hours of client delivery. Reduce capacity for holidays, administration, sales and time with no paid work. Lower capacity raises the overhead allocated to each service.
- Keep the scope consistentUse the same person, team or business scope for monthly overheads and productive hours. A job can span several months: its total person-hours still receive the same hourly overhead allocation. Revisit the assumptions when costs or capacity change.
- Check scope and client valueA calculated price cannot tell you what a client will pay. Define deliverables, revision limits and exclusions. Allow for likely extra work in your hours or expenses, then assess whether the offer makes commercial sense.
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Service pricing questions
Is this service pricing calculator free?
Yes. You can calculate and copy a pricing summary without registering. It runs in your browser and uses no paid API.
What is the difference between margin and markup?
Margin divides profit by selling price; markup divides profit by cost. With a cost of 380 and a price of 475, profit is 95: a 20% margin but a 25% markup. Adding 20% to cost does not produce a 20% margin.
What should I include in my hourly cost?
Use your internal cost of delivering one hour, including your own pay or employee costs. You can include employer contributions and benefits here, or account for them in overheads, but do not count them twice. For mixed roles, use a weighted average or estimate separate services.
What if I have no overheads or no productive hours?
Leave overheads blank or enter zero if none apply. Productive hours must still be positive: the model allocates costs over actual delivery capacity. If no service hours can be delivered, this calculator cannot establish a usable hourly allocation.
Can I use this for a fixed-price service or a team?
Yes. Enter all person-hours needed for one job or package, and a suitable average internal hourly cost. For a team, use team overheads and team productive hours. The equivalent hourly selling price is the package price divided by the job hours; it is not an employee wage.
Does the result include VAT, taxes or guaranteed profit?
No. The price excludes VAT and sales tax, and the result is not take-home income. Profit is the price minus only the costs entered. Missing costs, extra work or lower utilisation can reduce actual profit. Choose any tax treatment separately when preparing the quote.
Are my costs saved or sent to Skileo?
The draft is saved only in this browser, when storage is available. Nothing is sent to Skileo. Clear inputs to remove the entered figures. Copying the summary does not create or send a quote; enter the reviewed price manually in your chosen tool.
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