For 3 service hours, 1 nonbillable hour, $20 owner pay per hour, and $40 of other costs, fixed cost is $120. At a 23% margin with no percentage fees, the exact minimum is $155.85.
What the result means
The exact target price is the smallest cent amount that reaches your chosen margin on the quoted sales price. The suggested quote rounds upward to a simple amount; it is not a local market rate.
What counts as a job cost
Count owner pay, helpers, materials, travel, equipment allocation, overhead, and fixed transaction charges once each. Enter a fee percentage only when it is charged on the quote amount.
Check uncertainty
Edit low, expected, and high owner-hour and material assumptions. Each scenario recalculates the whole quote; these are your own planning inputs, not a statistical range.
When to use this method
Enter a single scoped job or a whole package. Replace every demonstration number, then open the calculation details to inspect the fixed cost, fee basis, and target denominator.
A mistake to avoid
A payment fee charged on a taxable or tipped total may use a different base. Enter the percentage here only when it applies to this quote amount.
What this does not tell you
These are calculation examples using stated assumptions. They are not national service rates, local quotes, tax advice, or a prediction of demand. Confirm your own scope, costs, fee basis, and any local requirements before sending a price.
Source and updates
The formulas and assumptions are explained in our methodology. This guide was prepared on 2026-11-06. If you find an error, send a correction.