Your Recommended Labor Rate:
function calculateLaborRate() {
var overheadCosts = parseFloat(document.getElementById("overheadCosts").value);
var billableHoursPerTechnician = parseFloat(document.getElementById("billableHoursPerTechnician").value);
var numberOfTechnicians = parseFloat(document.getElementById("numberOfTechnicians").value);
var desiredProfitMargin = parseFloat(document.getElementById("desiredProfitMargin").value);
var resultsDiv = document.getElementById("results");
var recommendedRateP = document.getElementById("recommendedRate");
var explanationP = document.getElementById("explanation");
if (isNaN(overheadCosts) || isNaN(billableHoursPerTechnician) || isNaN(numberOfTechnicians) || isNaN(desiredProfitMargin)) {
recommendedRateP.innerText = "Please enter valid numbers for all fields.";
explanationP.innerText = "";
return;
}
if (billableHoursPerTechnician <= 0 || numberOfTechnicians <= 0) {
recommendedRateP.innerText = "Billable hours and number of technicians must be greater than zero.";
explanationP.innerText = "";
return;
}
var totalMonthlyBillableHours = billableHoursPerTechnician * numberOfTechnicians;
var costPerBillableHour = overheadCosts / totalMonthlyBillableHours;
var profitMultiplier = 1 + (desiredProfitMargin / 100);
var recommendedLaborRate = costPerBillableHour * profitMultiplier;
recommendedRateP.innerText = "$" + recommendedLaborRate.toFixed(2) + " per hour";
explanationP.innerHTML = `
Explanation:
This calculation first determines your total monthly billable hours by multiplying the billable hours per technician by the number of technicians ( ${billableHoursPerTechnician} * ${numberOfTechnicians} = ${totalMonthlyBillableHours} hours).
Then, it calculates the cost per billable hour by dividing your total monthly overhead costs by the total monthly billable hours ($${overheadCosts} / ${totalMonthlyBillableHours} hours = $${costPerBillableHour.toFixed(2)} per hour).
Finally, to achieve your desired profit margin of ${desiredProfitMargin}%, the cost per hour is multiplied by a profit factor (1 + (${desiredProfitMargin}% / 100)). This results in a recommended hourly labor rate of
$${recommendedLaborRate.toFixed(2)}. Remember to also factor in parts markup and potential warranty costs when setting your overall pricing strategy.
`;
}
.calculator-container {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ccc;
border-radius: 8px;
box-shadow: 0 2px 4px rgba(0, 0, 0, 0.1);
}
.calculator-inputs h2, .calculator-results h3 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input[type="number"] {
width: calc(100% – 22px);
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 1rem;
}
.calculator-inputs button {
display: block;
width: 100%;
padding: 12px 20px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 1.1rem;
cursor: pointer;
transition: background-color 0.3s ease;
}
.calculator-inputs button:hover {
background-color: #0056b3;
}
.calculator-results {
margin-top: 30px;
padding: 20px;
background-color: #f8f9fa;
border: 1px solid #e0e0e0;
border-radius: 4px;
}
.calculator-results p {
margin-bottom: 10px;
color: #444;
}
.calculator-results #recommendedRate {
font-size: 1.4rem;
font-weight: bold;
color: #28a745;
}
.calculator-results #explanation {
font-size: 0.9rem;
line-height: 1.5;
color: #666;
}