IN THIS GUIDE ▾
What markup percentage should you use for that furnace? What about labor? Materials? Most contractors guess. Successful contractors use proven HVAC markup percentages based on industry standards and their market position.
This is your complete HVAC markup chart for 2026. Bookmark this page and reference it when building your price book or creating quotes.
Key distinction: Markup vs margin—markup is what you add to cost, margin is the percentage of selling price. This guide uses markup percentages but shows how they translate to profit margins.
What you'll find: Complete markup charts by category (equipment 35-50%, materials 30-60%, small parts 50-200%, refrigerant 150-300%), 2026 labor rates, how to adjust for your market, real examples showing the math, and an interactive markup calculator you can use right on this page. Everything you need for accurate HVAC pricing markup.
Many contractors print this markup chart and keep it at their desk for quick reference. Bookmark it now so you always have access to current industry standards.
Same $500 profit.50% markup, 33% margin.
Critical to understand before using these charts: Markup and margin are not the same thing, and confusing them can cost you thousands.
Same dollar profit, different percentages! 50% markup = 33% margin. This is why you need to understand both.
Markup-to-margin conversion chart
Margin = Markup ÷ (1 + Markup)
Example: 50% markup → 0.50 ÷ 1.50 = 33.3% margin
Most contractors think in markup ("I mark it up 50%") but should think in margin ("I make 33% profit"). This guide shows markup percentages, but always keep your target margin in mind.
The chart you'll use most.Start at Standard, then adjust.
This is the core HVAC markup chart you'll reference most often. Use the "Standard" column as your baseline, then adjust based on your market position.
Residential equipment
Commercial equipment
Accessories & small equipment
Brand-based markup variations
Customers price shop, competitive market, but lower % means higher $ profit (35% on $5,000 = $1,750).
Customers don't price shop, convenience factor (100% on $150 = $150 profit).
Facility managers know costs, competitive bidding, volume makes up for lower margin.
Run your own numbers.Cost in, selling price out.
Pick a percentage from the chart above, then run your own numbers. Enter equipment cost, materials, labor hours and your hourly rate, choose a target margin, and the calculator returns the selling price, dollar profit and the equivalent markup percentage.
Selling price
$6,000
Profit
$2,400
Markup on cost
66.7%
Want the full-page version with a walkthrough and the margin table? Open the standalone HVAC markup calculator. For labor, use the HVAC labor rate calculator to find the billable rate before you plug it in here.
Refrigerant at 200%.Screws at 300%. Both are normal.
Major materials
Small supplies (often not itemized)
Disposal fees
Pass through at cost + 10-20% handling markup. Never eat disposal costs.
Add "Materials & Supplies: $150" to every quote (calculate as 5-8% of equipment + major materials)
Small job (<$1K): $50 · Medium ($1K-5K): $100 · Large (>$5K): $200
EPA certification required ($$$) · Specialized equipment needed · Recovery/disposal costs · Liability and regulations · Market accepts it
$8/lb cost → $20-25/lb selling price is industry standard.
Labor isn't marked up.It's built from cost, overhead, margin.
Labor isn't marked up the same way as materials. Instead, you calculate a selling rate based on true costs plus overhead plus profit.
Standard labor rates 2026
Or use flat rate pricing
Instead of hourly, charge flat rate per task. Flat rate rewards efficiency—finish faster, keep same price:
Helper / apprentice rates
The charts are the standard.Three factors move you off it.
The charts show industry standards. Adjust for YOUR situation using these factors:
Your markup should reflect your value proposition. Premium service, faster response, longer warranties, and more experience all justify higher markups.
Three quotes, worked.38%, 60% and 45% margin.
Example 1: Standard AC replacement
Example 2: Service call with repair
Example 3: Premium system with add-ons
For more detailed pricing examples and strategies, see our complete guide on how to price HVAC jobs.
Where the money leaks.And the fix for each.
Build a proper price book with our HVAC price book template guide to avoid these costly errors.
Target 35-45% for installations, 50-60% for service work. These ranges account for overhead and leave room for profit growth.
Yes, on small items (filters, thermostats, small parts). Not on major equipment—customers will price shop large purchases.
Never. Show line items (equipment, labor, materials) but never reveal your cost or markup percentage—that's proprietary business information.
No. After overhead, 40% markup often yields only 25-30% net profit. That's completely fair for quality work and expertise.
Explain value, not cost. "This includes quality equipment, expert installation, warranty, and 15 years of experience. I'd rather explain price once than apologize for quality forever."
Don't compete on price. Compete on value, speed, service, and professionalism. Let them be cheap and busy. You be profitable and respected.
Stop guessing.Start using proven percentages.
Bookmark this page and reference it when building your price book or pricing jobs.
Stop guessing. Start using proven HVAC markup percentages.