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Service Pricing Calculator

Short answer: your minimum price per service = (income goal + overheads + tax set-aside) ÷ billable hours per year × hours per service + materials. Add a profit margin on top for your suggested price. Enter your numbers below; everything is calculated in your browser and nothing is saved or sent anywhere.

Price at different margins

How to use your result

1. Compare with your current prices. If you charge less than the minimum, you are paying to work: every booking loses money once you count your time and costs.
2. Check the local market. Look at 5–10 competitors with similar experience. If your suggested price is far above them, reduce costs, speed up the service, or add value that justifies the difference.
3. Raise prices in steps. Tell existing clients in advance, explain what's included, and apply new prices to new clients first.
4. Re-run the numbers yearly or whenever rent, product costs or your income goal change.

Common pricing mistakes

• Counting only appointment time. Travel, setup, cleanup and messages are part of the job.
• Assuming 40 billable hours a week. Admin and marketing eat into it; be honest.
• Forgetting tax and quiet months. A profit margin is your buffer.
• Copying the cheapest competitor. Low prices attract price shoppers and burn you out.

Frequently asked questions

How do I calculate what to charge for a service?

Work out the income you need, add your business overheads and a tax set-aside, and divide by the hours you can realistically bill in a year. That gives your minimum hourly rate. Multiply it by the full time a service takes (including prep, cleanup and travel), add materials, then add a profit margin.

What is the difference between the minimum price and the suggested price?

The minimum price covers your income goal, overheads, taxes and materials with nothing left over. The suggested price adds a profit margin so the business can absorb quiet weeks, invest in equipment and grow.

Why are billable hours lower than the hours I work?

Much of your week goes on admin, marketing, messages, cleaning and travel that no one pays for directly. Many solo service businesses can only bill a portion of their working hours, so use an honest estimate.

Should I just match my competitors' prices?

Check local prices to understand the market, but don't copy them blindly. Their costs, experience and hours are different from yours. Price from your own numbers first, then decide where you want to sit in the market.

Does this calculator give tax advice?

No. The tax set-aside is a rough percentage to budget with. Tax rules differ in the US and UK and by situation, so check with an accountant or the IRS / HMRC guidance.