Labor Rate Calculator for Service

Step 1: Standard Hourly Costs

Technician Pay Per Standard Hour

Direct Expenses Based on Compenstation

Direct Labor Cost Per Standard Hour

Step 2: Lost Days

Total Hours Available (no overtime)

Number Paid Vacation Hours

Number of Paid Holidays (in hours)

Number of Paid Sick/Personal Hours

Productive Hours Available

Non-Billable Hours (unproductive time)

Billable Hours

Adjusted Direct Labor Cost Per Billable Hour

Step 3: Vehicle Costs

A commercial vehicle costs a lot to operate. According to recent research performed by the AAA, it costs about 69.2 cents per mile to operate a non‐commercial minivan. The internet is full of information on this topic, so we encourage you to do your own research.

Miles Driven Per Year

Cost Per Mile

Total Vehicle Cost Per Year

Vehicle Cost Per Billable Hour

Cost of Technician and Truck (no overhead)

Adjusted Direct Labor Cost Per Billable Hour

Vehicle Cost Per Billable Hour

True Direct Cost Of Labor

Step 4: Add for Department Overhead and Profit

Enter Other Department Overhead as % of Sales

Add for Net Profit Before Taxes

This is your LOWEST Hourly Labor Rate You may need to charge more to make up for lower priced travel and diagnostic fees. You will need to charge more to make up for service agreements or other discounts.

Your Labor Markup