How much should you charge for a service call?
Charge at least what one truck roll costs you, then add your margin on top.
Break-even fee = tech time + truck + office time + other cost per call
Service call fee = break-even fee ÷ (1 − target margin)
Price ranges from other companies tell you what the market pays. Only your own costs tell you where you start losing money.
Example: a tech earns 30 dollars an hour with a 35% labor burden, so an hour costs 40.50 dollars. A call takes 35 minutes of driving and 30 on site, 43.88 dollars of tech time. Add 18 miles of truck (13.68 dollars), 12 minutes of office time at 28 dollars an hour (5.60 dollars) and 15 dollars of marketing and software. The break-even fee is 78.16 dollars, and 130.26 dollars keeps a 40% margin.
How do you calculate a trip charge?
Add the cost of the tech’s drive time to the cost of running the truck for that drive.
Trip charge = (drive minutes ÷ 60 x tech cost per hour) + (miles x truck cost per mile)
The IRS business standard mileage rate is 76 cents a mile for driving on or after July 1, 2026 (Announcement 2026-11). The IRS bases it on a yearly study of the fixed and variable costs of running a car, so a loaded service van can cost more. Switch to cost by the hour if you know your truck’s monthly cost.
To get the drive minutes and miles from real calls, paste a job list in step 3 and use the averages. Times like 0:35 or 1:05 read as hours and minutes.
How much to charge for an HVAC, plumbing or electrical service call?
Start from the trade’s sample in step 1, then replace each figure with your own wage, burden, drive time and truck cost.
The trades differ in wages, workers comp, drive distance and how long a diagnosis takes. Those inputs move the fee more than the trade name does.
Your labor burden comes from payroll taxes, insurance and benefits. The labor burden calculator works it out per tech. For a truck that runs long routes, the trucking cost per mile calculator gives a cost per mile to put in step 1.
Should the service call fee be credited to the repair?
Credit it only if your repair prices already carry the cost of the trip.
Fees credited back a month = calls charged x close rate x fee
Example: with 120 calls a month, 12 waived and 60% of the rest turning into repairs, 64.8 calls get the 130.26 dollar fee back. That is 8,441 dollars a month. The fees you keep cover 5,627 dollars of the 9,379 dollars of truck rolls, so the repairs must carry the other 3,751 dollars, about 57.89 dollars per repair.
What does waiving the service call fee cost?
Each waived call costs you the full truck roll, with no fee coming in to cover it.
Monthly cost of waived fees = waived calls x break-even fee
Example: waiving 12 of 120 calls at a 78.16 dollar cost per truck roll costs 938 dollars a month in tech, truck and office time. At a 130.26 dollar fee, the fees not collected come to 1,563 dollars. Count free-call coupons, member visits and goodwill calls in the waived share in step 1.
Questions
Is my data uploaded anywhere?
No. The math runs in your browser and nothing leaves the page.
What is the difference between a service call fee and a diagnostic fee?
A service call or trip charge pays for getting a tech to the door. A diagnostic fee pays for finding the problem; many shops roll both into one fee, which is what the on-site minutes cover here.
Should the after-hours fee be higher?
If you pay techs extra for nights and weekends, the call costs you more. The after-hours fee adds your pay premium to the tech time and keeps the same margin.
Can I use the IRS mileage rate for a work truck?
It is a fair starting point for cost per mile. If your fuel, payments and repairs come to more, put your own figure in or switch to cost by the hour.
Sources
- Standard mileage rates, Internal Revenue Service,
- Internal Revenue Bulletin 2026-29 (Announcement 2026-11, revised standard mileage rates), Internal Revenue Service,
- IRS sets 2026 business standard mileage rate at 72.5 cents per mile (IR-2025-128), Internal Revenue Service,
