How Much Should an HVAC Contractor Charge Per Hour?
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Short answer: most HVAC contractors need to bill $75–$150+ per hour once you account for overhead, non-billable time, and profit — even if your own wage is $30–$45/hour. The gap between what you pay yourself and what you must charge is where most techs underprice themselves. Here's how to find your real number. Want it now? Run your job through the free job estimate calculator.
Why your charge rate is 2–3× your wage
If you pay yourself (or a tech) $40/hour and bill $40/hour, you go broke — because a paid hour on a job has to cover a lot more than that hour:
- Non-billable time — driving, quoting, buying parts, invoicing. A tech might only bill 25–30 hours in a 40-hour week, so every billable hour has to carry the unpaid ones.
- Overhead — truck, fuel, insurance, tools, license, phone, software. These get paid whether the truck is moving or not.
- Profit — the business itself needs to earn above wages and overhead, or there's no reason to carry the risk.
Stack those and a $40 wage typically needs a $90–$130 billed rate to leave real profit.
Build your rate from the bottom up
| Layer | Example |
|---|---|
| Your labor cost / hour | $40 |
| ÷ billable ratio (28 of 40 hrs = 0.7) | $57 |
| + overhead per billable hour | +$30 → $87 |
| + profit markup (~35%) | ≈ $118/hour |
That's why "I only pay my guy $40" and "we charge $120/hour" are both true — the $80 gap is non-billable time, overhead, and profit, not markup for its own sake.
Flat-rate vs. hourly
Many established HVAC businesses quote flat-rate per job rather than hourly, because customers prefer a fixed price and fast techs get rewarded for efficiency. But you still need an accurate hourly cost underneath to price those flat rates — otherwise you're guessing. Build the job up from cost, then present it as one number.
Quick FAQ
How much do HVAC contractors charge per hour?
Commonly $75–$150+ per hour depending on region, overhead, and whether it's service or install. The right number for you is your labor cost divided by your billable ratio, plus overhead per hour, plus a profit markup — usually 2–3× the wage you pay.
Why is the charge rate so much higher than the wage?
Because a billed hour has to cover unpaid time (driving, quoting, parts runs), truck and business overhead, and profit — not just the wage for that single hour. A tech who bills 28 of 40 hours needs each billed hour to carry the other 12.
Should HVAC pricing be hourly or flat-rate?
Flat-rate per job is often better for customers and rewards efficient techs, but you must build it from an accurate hourly cost first. Price the job up from materials + labor + overhead + markup, then quote one flat number.
General guidance for pricing your work — not a guaranteed rate. Your true number depends on your market, overhead, and job mix.
More trades guides: how to price a job · how to write a contractor estimate · what profit margin to aim for.