What markup should HVAC contractors charge on equipment?

25–40% on equipment and 25–35% on parts is typical. You sourced, transported, installed, and are warranting the equipment — the markup covers all of that, not just profit.

How much should HVAC technicians charge per hour?

$80–$120/hr for skilled HVAC techs depending on market. Price per-job when possible to avoid penalizing efficiency.

Do HVAC jobs require permits?

Yes — new installations, equipment replacements, and duct modifications typically require permits. Always pull them. Pass the permit fee through as a line item.

What profit margin should HVAC contractors target?

20–30% net on total costs. HVAC has high equipment and liability costs, so don't cut below 20% or a warranty call will eat the job's profit.

Should I charge for diagnostic and service calls?

Yes — $85–$150 for a standard service call. Emergency and after-hours calls justify $150–$250. Without it, short calls run at a loss.

HVAC Job Pricing Calculator

Labor

Lead tech hours Hours you (the lead tech) will work

hrs

Your loaded hourly cost Your wage + payroll burden

$ /hr

Helper / apprentice hours Leave 0 if working solo

hrs

Helper loaded hourly cost Their wage + payroll burden

$ /hr

Equipment & Materials

Equipment & parts cost (raw) Your actual cost from distributor

Equipment & materials markup 25% is typical for HVAC

Job Costs

Trip / service call fee Flat charge to show up on site

Permit & inspection fees Pass-through to client

Overhead

Monthly overhead Insurance, vehicles, tools, admin…

$ /mo

Billable hours per month Hours actually on paying jobs

hrs

Profit & Reserve

Customize

Profit margin 25% is a healthy target

Callback reserve Buffer for warranty callbacks

Tax set-aside Informational — not in quote

Recommended Job Price

$0.00/hr effective rate

Price Breakdown

Labor costWhat you actually pay your crew	—
Overhead allocation—	—
Equipment & materials—	—
Trip / service callFlat job charge	—
Permits & inspectionsPass-through fee	—
Subtotal before reserve	—
Callback reserveSet aside for warranty work	—
Your profitTake-home after all costs	—
⚠ Tax set-aside (not in quote)Set this aside — it's not income	—

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FAQ

What markup on equipment and parts?

25–40% on equipment, 25–35% on parts. You sourced, transported, installed, and are warranting it — the markup covers all of that.

Should I charge for service calls?

Yes — $85–$150 standard, $150–$250 for emergencies. Without it, short diagnostic calls run at a loss.

Do HVAC jobs need permits?

Yes for new installs, replacements, and duct modifications in most jurisdictions. Always pull them — pass the fee through as a line item.

What profit margin should I target?

20–30% net. HVAC has high equipment and liability costs, so don't go below 20% or a warranty callback will wipe the profit.

What counts as overhead?

Vehicle, EPA certification costs, insurance, specialized tools, refrigerant handling fees, and admin time. Divide monthly total by billable hours.

Disclaimer: Estimates only — not financial or tax advice. Actual costs vary by location, scope, and market. Consult a qualified professional for your situation.