Service Price Calculator
Find a selling price that covers the time and supplies for one service and leaves your chosen margin.
How do you price a service using a target gross margin?
Add the cost of the labor used for one appointment to its other direct costs. Express the target margin as a decimal and divide total cost by one minus that margin. Use the actual time the job consumes, including preparation you have chosen to recover through this price. Compare the result with what it costs to deliver the same service on a busier or longer appointment.
Suggested price = (labor cost + materials) ÷ (1 − target margin as a decimal)
Sell priced services as Shopify appointments →Service Price Calculator FAQ
How is a margin different from a markup?
A 40% markup on a $60 cost gives a price of $84. A 40% gross margin means the cost uses 60% of the sale, giving a price of $100. Choose the percentage according to the business target you mean.
Do I enter what I charge customers as my hourly labor cost?
Enter what an hour of the service costs you to provide. For an owner-operated business, choose the hourly amount you need to allow for your own work. The result is a suggested selling price for the full service.
Where do I put preparation and cleanup time?
Add it to the job’s duration if that labor is part of delivering the service. A 60-minute session plus 15 minutes of setup and 15 minutes of cleanup uses 1.5 hours.
What counts as another direct cost?
Include costs attributable to the job, such as consumable materials or a room hired for that one appointment. Allocate a shared cost consistently if you decide to include a portion.
Does the estimate include sales tax, card fees or monthly rent?
The formula uses the costs and margin you enter. Review applicable taxes, payment fees and any overhead you still need to recover before publishing the final price.
How do I use the result for a mobile appointment?
Price the underlying service first. Work out the journey in the travel fee calculator and show that amount separately if your business charges for visits outside its usual area.
Built for Shopify
