How to use it
- Use your loaded labor cost, not what you bill. Include payroll taxes, benefits, and truck cost, and count drive time in the minutes.
- Break-even price is the lowest yearly price that covers the visits plus the overhead you entered. Anything above it is margin before repairs.
- The 3-year projection takes each year's members × renewal rate, then adds your new sign-ups. It shows how much renewals matter: a few points of renewal rate compound.
- Repair revenue is revenue, not profit — it's the work plan visits surface. Treat it as upside when you set your price, not a reason to sell the plan at a loss.
What good looks like
Market research from Mordor Intelligence's U.S. HVAC Services Market report, as cited by ACCA's blog, puts recurring service agreements at roughly 55% of total HVACR industry revenue. If agreements are a minor line item in your shop, that's worth a look. Source: ACCA HVAC Blog, "Strategies for Increasing Service Agreement Sales"
We haven't found a solid public source for plan pricing, renewal rates, or margin per member, so we don't quote any here. That's what the anonymous Owner Numbers survey collects — including maintenance-agreement pricing — so owners can compare against real peers.
Related tools
The labor rate you plug in above comes from somewhere. The HVAC break-even hourly rate calculator shows what a billable hour really costs your shop and what you need to charge for it.
Pricing a commercial account instead of a homeowner plan? The HVAC commercial maintenance contract pricing calculator prices a preventive-maintenance contract from the units on site, visits per year, and drive time.
Pricing repairs too? The markup vs margin & flat-rate price calculator turns parts, labor hours, and a target margin into a price.
Buying leads to fill the schedule? The HVAC marketing ROI calculator shows your cost per customer by channel and whether the spend pays back.
What's a plan member worth over the years they stay? The HVAC customer lifetime value calculator adds service calls, plan dues, and the replacement they may buy from you.
Losing techs? The HVAC technician turnover cost calculator adds up what one departure really costs and the raise that money could fund instead.
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.