What the result means
The price uses the same task pricing and cost functions as TierMenu's price book. Labor is hours multiplied by your billable rate; parts use the multiplier entered here; the selected fixed fee and rounding rule are then applied. A member discount affects the separate member price.
When you enter burdened labor cost, the result also shows true task cost and gross margin. The calculator does not tell you what to charge. Replace the example values with your own costs and pricing rules.
How it's calculated
- Labor price = labor hours × billable rate
- Parts price = parts cost × parts multiplier
- Gross margin = (price − true cost) ÷ price × 100
Markup % = (multiplier − 1) × 100. Margin % on parts = (multiplier − 1) ÷ multiplier × 100.
Worked example
Sample numbers: 1.5 hours at $155/h, $40 parts cost at a 2.5× multiplier, $45/h burdened labor, 10% member discount and nearest $5 rounding.
- Labor $232.50 + parts $100.00 = subtotal $332.50
- Rounded price = $335.00; member price = $300.00
- True cost = $107.50; gross margin = 67.91%
A 2.5× parts multiplier is a 150% markup and a 60% parts margin. Sample numbers. Use your own costs.
Reference table
The values below are computed from the same calculator functions used above. They let you compare common sizes and operating points without replacing the interactive calculation or its assumptions.
| Input | How to use it |
|---|---|
| Use your costs | Sample inputs are examples only; replace them with your own figures. |
| Review assumptions | Include the costs and operating limits that apply to your business. |
Reference values are examples based on the stated assumptions. Verify manufacturer data, conductor ampacity and local requirements before using a result.
Sources and assumptions
Markup % = (multiplier − 1) × 100. Margin % on parts = (multiplier − 1) ÷ multiplier × 100. The formulas are published so you can check a result by hand instead of treating it as a black box.
Last reviewed . Spot an error? Email support@tiermenu.com.
FAQ
Does the calculator use TierMenu's pricing engine?
Yes. It calls the same price and cost functions used for price-book tasks, rather than a separate copy of the rounding and markup math.
What is the difference between markup and margin?
Markup compares profit with cost. Margin compares profit with the sell price, so the two percentages differ.
What does the member price show?
It applies the optional member discount after the regular rounded price is calculated.
Are the sample amounts recommended prices?
No. They demonstrate the calculation only. Enter your own costs, labor rate, fees and discount.
Using the result in your prices
The result is only as good as the costs you enter. Use what you actually pay for parts, your burdened labor cost and your real overhead, not the sample inputs.
Round the final price, not the inputs. If you round a price to a clean number, check the markup or margin again after rounding so you know what you are really keeping.
Rerun the numbers when your costs change: a supplier price increase, a wage or insurance change, a new hire or a new year's overhead budget. Then compare the result with the prices you charge now.
TierMenu provides these free calculators without an email gate. The results stay in this browser unless you choose to copy a shareable URL or print the page. A shared URL includes the calculator inputs in its query string; do not put personal or sensitive information in calculator fields.