Service Price Calculator
Stop undercharging. Price every service so it covers your costs and hits your income goal.
What is the Service Price Calculator?
The Service Price Calculator builds a defensible price for any personal service from the ground up — product cost per service, labor time, overhead per appointment, and target profit — so your menu prices are set by math instead of by copying the salon down the street.
How is it calculated?
Enter the product/supply cost per service, the minutes it takes, your monthly overhead and available appointment hours, and your target profit margin. The calculator allocates overhead per service hour and outputs the minimum viable price and your recommended menu price.
Worked example: what’s the lowest price a personal trainer can charge on a $5,000 goal?
- Count your monthly capacity
Working days x clients per day: 20 days x 5 clients = 100 services per month.
- Add up fixed monthly costs
Rent $1,000 + insurance/licenses $100 + other $200 = $1,300. Spread across 100 services, that’s $13 of fixed cost baked into every session.
- Add variable supply costs
Supplies run $8 per service. Across 100 services: $8 x 100 = $800. Total monthly costs = $1,300 + $800 = $2,100.
- Find the revenue you actually need
Costs $2,100 + your $5,000 take-home goal = $7,100 in revenue per month.
- Divide by capacity for the floor price
$7,100 / 100 services = $71 minimum price per service.
- Verdict: $71 is break-even, not your sticker price
At a 45-minute session, $71 works out to $71 / 0.75 hr = $95/hr. Charge below $71 and you’re paying clients to show up. Add a 15-25% margin on top of the floor.
What minimum price do you need at different booking volumes?
| Clients / day | Services / month | Min price / service | Effective $/hr (45-min) |
|---|---|---|---|
| 3 | 60 | $113 | $151 |
| 4 | 80 | $87 | $116 |
| 5 (default) | 100 | $71 | $95 |
| 6 | 120 | $61 | $81 |
| 7 | 140 | $53 | $71 |
| 8 | 160 | $47 | $63 |
Frequently Asked Questions
How do I price my services correctly?
Add product cost, labor time at your target hourly earnings, and an overhead share (monthly fixed costs divided by monthly service hours), then apply your profit margin. A service using $8 in product, 45 minutes, and $12 of overhead needs to price near $75 to earn a real 20% margin at a $50/hour labor target.
What should my hourly rate be as a service provider?
Work backwards from income: desired annual take-home plus taxes and expenses, divided by realistic billable hours (usually 60–70% of working hours after gaps, cleanup, and admin). A $70,000 goal at 1,200 billable hours needs roughly $95/hour of service revenue — before supplies.
How often should I raise my service prices?
Review annually at minimum, and raise when you’re booked more than 80% or product costs rise over 10%. Small regular increases (5–8%) retain clients far better than a shock correction after three flat years — a fully booked calendar is the clearest underpricing signal there is.
Should every service on my menu be profitable?
Almost all. A deliberate loss-leader that fills chairs can work, but every service should at least cover product, labor, and overhead. Run each menu item through the calculator — most providers find one or two services quietly priced below true cost.
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