Pricing your services is one of the most consequential decisions you will make as an independent HVAC technician. Price too low and you will work yourself into the ground while barely covering expenses. Price too high without communicating value and you will lose bids. The goal is to find rates that cover your true costs, pay you fairly, and remain competitive in your local market.
Calculating Your True Cost of Doing Business
Before you can set a profitable rate, you need to know what it costs you to operate. Many solo techs skip this step and simply match what they think competitors charge — but you have no way of knowing whether a competitor’s rates are actually profitable for them.
Fixed Monthly Costs
| Expense Category | Typical Monthly Range |
|---|---|
| Vehicle payment and insurance | $600 - $1,200 |
| General liability insurance | $150 - $400 |
| EPA certifications and licensing | $25 - $75 (amortized) |
| Tool replacement and calibration | $100 - $300 |
| Phone, software, and subscriptions | $100 - $250 |
| Health insurance (self-employed) | $400 - $800 |
| Marketing and advertising | $200 - $500 |
| Fuel and vehicle maintenance | $400 - $800 |
For most solo technicians, fixed monthly overhead runs between $2,100 and $4,800.
Calculating Your Break-Even Hourly Rate
Assume 48 working weeks per year and an average of 6 billable hours per day, 5 days per week — roughly 1,440 billable hours annually. If your annual overhead is $40,000 and you want $70,000 in personal income, your minimum revenue target is $110,000. Divided by 1,440 hours, your break-even labor rate is roughly $76 per hour — before taxes, profit margin, or retirement savings. Add 25% for taxes and a 10% margin, and you arrive at a practical minimum of $100-$105 per hour.
Choosing a Pricing Model
Hourly Labor Rate
Charge for actual time plus materials. This works well for diagnostic calls, complex repairs, and maintenance visits with variable scope. Typical independent HVAC hourly rates in 2026 range from $85 to $150, depending on market, specialization, and experience.
Flat-Rate Pricing
Assign a fixed price to common repairs regardless of completion time. Experienced technicians benefit because efficiency increases their effective hourly rate.
| Repair | Typical Flat Rate |
|---|---|
| Capacitor replacement | $225 - $350 |
| Contactor replacement | $200 - $325 |
| Condensate drain clearing | $125 - $200 |
| Thermostat replacement (basic) | $175 - $300 |
| Blower motor replacement | $450 - $750 |
The Hybrid Approach
Most successful solo technicians use hourly rates for diagnostics and complex work and flat rates for common, well-defined repairs. This offers flexibility while providing clients with price certainty when possible.
Diagnostic Fees and Trip Charges
A diagnostic fee of $75-$125 compensates you for identifying the problem. Common structures include waiving the fee if the client proceeds with the repair, applying it as a credit toward repair cost, or charging it regardless. The “credit toward repair” model balances client appeal with fair compensation.
For wide service areas, add a trip charge beyond your core radius — typically $1.50-$2.50 per mile past 15-20 miles. Be transparent about this when scheduling.
Material Markup and Refrigerant Pricing
A 25-50% markup on parts is industry standard. This covers your sourcing time, inventory risk, supplier relationships, and the warranty you provide on installed parts.
Refrigerant pricing deserves special attention because costs have risen dramatically. Wholesale prices in 2026 vary widely: R-410A runs $8-$15 per pound, reclaimed R-22 costs $30-$75, and R-454B runs $12-$20. After markup, clients may pay $35 to $150 per pound depending on type. Always list refrigerant as a separate line item specifying type, quantity, and per-pound rate. This transparency helps clients understand why servicing an R-22 system costs more than an R-410A system.
Competing on Value, Not Price
Competing on price alone is a losing strategy for solo technicians. Large companies can absorb thin margins through volume — you cannot. Instead, compete on:
- Response time — same-day or next-day service
- Consistency — the same technician every time
- Transparency — clear, itemized invoicing with no hidden fees
- Expertise — specialized knowledge in compliance, older systems, or commercial refrigeration
- Accountability — you personally stand behind every repair
Professional invoicing reinforces this value proposition. A detailed, itemized invoice generated on-site with FieldPad — showing separate line items for labor, parts, and refrigerant with split tax support — communicates professionalism and eliminates billing disputes.
Reviewing Your Rates Annually
Adjust your pricing at least once per year based on changes in operating costs, local market movement, your utilization rate (if you are booked solid weeks out, your rates are too low), and inflation. A 3-5% annual increase is reasonable and expected.
Key Takeaways
- Calculate your true cost of doing business before setting rates — do not guess from competitor pricing.
- Your break-even rate is higher than you think once you account for insurance, taxes, vehicle costs, and non-billable hours.
- Use a hybrid pricing model: hourly for diagnostics and complex work, flat rate for common repairs.
- Charge a diagnostic fee that compensates you for expertise regardless of whether the client proceeds.
- Mark up materials 25-50% and list refrigerant as a separate, transparent line item.
- Compete on value, not price: response time, consistency, and expertise justify premium rates.
- Use professional, itemized invoicing to communicate value and reduce payment disputes.
- Review rates annually and adjust for cost increases and market changes.
