Work out service job quote instantly with clear inputs, formula shown and shareable results.
A service quote is labour hours at the charge-out rate plus parts at cost plus markup. Because labour carries no direct material cost, gross profit is the whole labour charge plus the parts markup — which is why labour rate discipline matters more than parts pricing.
Labour charge
Labour = Hours x Rate per hour
Parts charge
Parts = Parts cost x (1 + Markup %)
Quote total
Total = Labour charge + Parts charge
Either as a callout charge or as billable hours. Absorbing it silently is the most common reason small service businesses under-recover.
Fixed price wins work and rewards efficiency, but only if scope is well defined. Ambiguous scope on fixed price transfers all the risk to you.