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HVAC Break-Even Hourly Rate Calculator

What does one billable hour actually cost your shop — and what do you have to charge for it to break even, and to make the profit you want?

Runs in your browser — nothing you type is sent anywhere

Example numbers — replace with yours. The starting values are placeholders so the form isn't empty. They are not industry averages or benchmarks.

Your overhead

Your field techs

Your target

Results

Loaded tech wage —
Billable hours per year (all techs) —
Total yearly cost to cover —
Tech labor cost per billable hour —
Overhead per billable hour —
Fully loaded cost per billable hour —
Break-even hourly rate —
Hourly rate to hit your target profit —
At that rate, per year —

The math

—

How it works

  • Loaded wage = wage × (1 + burden %). That's what one paid tech hour really costs you.
  • Billable hours = paid hours × billable efficiency × techs. You pay for every hour; customers only pay for the billable ones.
  • Fully loaded cost per billable hour = (all tech labor + overhead) ÷ billable hours. This is your break-even hourly rate: bill less than this on average and the shop loses money on labor.
  • Target rate = break-even rate ÷ (1 − target profit %). Dividing (not multiplying) makes the profit a true share of revenue: at 15%, $100 of cost needs about $117.65, not $115.

Things this leaves out

  • Parts and equipment. This is a labor-rate calculator. Price materials with their own markup so they carry their own cost and profit.
  • Overhead only on labor. If your parts and equipment markups already cover some overhead, your hourly rate can be lower than shown. If you sell flat-rate, divide your price by the hours the job takes and compare it to these rates.
  • Efficiency moves the answer most. Try changing it by 5 points and watch the break-even rate. Every unbilled hour still has to be paid for by the billed ones.

We don't quote typical labor rates, burden, or efficiency here because we haven't found a solid public source for them. That's what the anonymous Owner Numbers survey collects, so owners can compare against real peers.

Related tools

Not sure what burden % to enter? The HVAC labor burden calculator adds payroll taxes, workers' comp, benefits, and time off to a tech's wage and gives you the percentage. Not sure what your trucks add to overhead? The HVAC service truck cost calculator adds up payment, insurance, fuel, maintenance, and truck stock per truck.

Once you know your loaded labor cost, use the HVAC maintenance agreement calculator to see what each plan member really earns you.

To turn that cost into flat-rate prices, use the markup vs margin & flat-rate price calculator. Already charging above break-even and thinking about a raise? The HVAC price increase calculator shows how many jobs you could lose before it stops paying. To check a markup or a margin on any job cost, use the HVAC markup vs margin calculator. To see what one finished job really made after overhead and commission, use the HVAC job profit calculator.

To see what your marketing costs per customer, use the HVAC marketing ROI calculator.

Losing techs? The HVAC technician turnover cost calculator adds up what one departure really costs and the raise that money could fund instead.

Thinking about adding a tech? The should I hire another HVAC tech payback calculator uses your cost and revenue per billable hour to show how many months a new hire takes to pay back.

Setting a revenue target? The HVAC revenue goal calculator turns it into jobs and calls per day, and revenue per tech.

Thinking about selling one day? The HVAC business valuation calculator turns your profit and add-backs into SDE and a value range.

Worried about the slow months? The HVAC slow-season cash reserve calculator shows how much cash you need saved to cover overhead and payroll until the phones pick up.