The parts run costs money too.
Markup isn’t margin.
Markup and margin measure different things. Enter the part cost, your sourcing and warranty allowances, and a target margin to calculate an estimated price.
One receipt, one margin.
From part cost to estimated price.
Start with the part cost, add your sourcing and warranty allowances, then choose a target margin. Adjust the examples to match your own assumptions.
Your assumptions
Defaults are examples. The result includes only the entered costs, with rounding.
Estimated price from your inputs
$92for this part
Modeled cost $55
What that price is made of
- The part
- $40
- The run
- $14
- Warranty
- $1
- Above modeled cost
- $37
- 130%
- markup over the receipt
- $15
- what the receipt left out
- 2.30×
- the multiplier for your software
Worth knowing
A 40% markup on the part cost gives a price of $56. After your sourcing and warranty allowances, the modeled margin is 2%, compared with your 40% target.
No hidden multiplier.
Here is exactly what it did.
Six steps, in order, with all three judgment calls named.
- The price on the supply-house receiptwhat you paid
- Plus the paid minutes to have it, at your tech costthe run, in dollars
- Plus your warranty allowance on the part costan allowance in dollars
- Those three togetherthe modeled cost
- Divided by one minus the margin you keepthe price on the invoice
- That price against the receiptthe markup it took
Example: 20 minutes of sourcing
The default is an example, not measured sourcing time. Enter your own average time for calls, collection and travel; a stocked part and a special order can require different allowances.
Example: $41 per paid hour
Enter the hourly cost you want allocated to sourcing. Include the relevant wage and employer costs, and avoid counting the same cost again elsewhere in the job.
Example: 3% warranty allowance
The tool adds 3% of the part cost by default. This is an editable allowance, not a measured failure rate. It does not automatically include return visits, replacement labor or repeated failures.
What it can’t know. The result includes only the part, sourcing time and warranty allowance entered here, with intermediate values rounded. Other costs and taxes are not added automatically. It is a planning example, not a guaranteed break-even or market price.
Keep the cost beside the price.
Your parts, priced once.
Save what each part costs you and what you charge for it. The price book keeps both, so every estimate starts from the right number instead of a guess at the counter.
Parts costs and prices saved together
Photos and favorites for the parts you use most
Import your list from a spreadsheet
Questions about the parts markup calculator.
The ones a skeptical owner asks, answered straight.
What is the difference between markup and margin?
Markup is a share of the cost; margin is a share of the price. Add 40% to a $40 part and you charge $56, but the $16 you added is only 28.6% of the price. Same dollars, two different percentages. This tool asks for the margin you want and works out the markup it takes.
Why do small parts need a bigger multiplier than big ones?
Because the run costs the same whether the part is $8 or $800. Twenty minutes of paid time is a big share of a small part and a rounding error on a compressor. Move the cost slider and watch the markup fall as the part gets dearer.
Is it fair to charge more than the supply house charged me?
You are not selling the part. You are selling the right part, in hand, warrantied and installed by somebody who knew which one to buy. Price the parts line honestly or your labor rate quietly pays for the parts department.
Should the markup show on the invoice?
Most shops print one line: the part at your price. If a customer pushes back, the honest answer is that the price carries sourcing, the trip, stocking and the warranty, which is the arithmetic on this page.
Is anything I type here saved?
No. It runs in your browser, there is no account and nothing is sent anywhere. Close the tab and it is gone.
Cost in. Price out.
Put the next estimate in order.
Your price book, your estimates and your invoices, connected.
Try it free for 15 days. No credit card required.