Hourly rate to job price

You know what an hour is worth to you. This turns it into a number you can put on a quote.

Most people multiply rate by hours and stop. That leaves out the cloths and chemicals, the insurance and phone, and any profit beyond your own wage. This adds each one in turn — and shows the most common mistake at the end.

Your numbers

Target hourly rate ($)

Estimated hours

Supplies (% of labour)

Overhead (% of labour)

Target profit margin (% of price)

Labour

Supplies

Overhead

Your cost for the job

Price to hit your margin

Same thing as a markup on cost

If you had used the margin % as a markup instead

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Worked example

Filled in above: $50 an hour, a 3-hour job, supplies at 5% of labour, overhead at 10%, and a 20% margin.

Line	Amount
Labour 3 × $50	$150.00
Supplies 5%	$7.50
Overhead 10%	$15.00
Cost	$172.50
Price at 20% margin: $172.50 ÷ 0.8	$215.63
Marking cost up by 20% instead would give	$207.00

The $8.63 difference is small on one job and about $2,000 a year on five jobs a week.

How it's calculated

Labour = hourly rate × hours.
Supplies and overhead are each a percentage of labour. If you know the dollar figures instead, the supply cost per job calculator gives you the supplies number; overhead is your fixed monthly costs divided by jobs a month.
Cost = labour + supplies + overhead.
Price = cost ÷ (1 − margin). A margin is a share of the price, so you divide.

Margin is not markup. A 20% markup adds 20% of the cost. A 20% margin means 20% of the final price is profit — which takes a 25% markup. If you decide on a margin and then apply it as a markup, every job comes in short, and the gap grows with the margin: a "50% margin" applied as a markup is really a 33% margin. The last two lines above show both so you can see the gap on your own numbers.

Get the full workbook

House Cleaning Pricing Calculator $14

The pricing calculator does this per job with your own rates, adds travel and a minimum price floor, prints a quote, and keeps a log of what you quoted against what the job actually took.

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Same file in both stores. Pay once, own it, works in Google Sheets and Excel.

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