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    HVAC markup chart 2026: equipment 35–50%, parts on a sliding scale.

    Standard HVAC markup percentages for parts, materials, equipment and labor, a markup-to-margin chart, and a free markup calculator.

    EQUIPMENT
    35–50%residential markup
    MATERIALS
    30–60%by item
    REFRIGERANT
    150–300%per lb
    LABOR
    $95–225per hour, 2026
    IN THIS GUIDE ▾
    THE SHORT ANSWER

    Most residential HVAC companies mark up equipment 35% to 50% over cost (a 26% to 33% margin), major materials 30% to 60%, parts on a sliding scale from about 50% on parts over $250 to 300% or more on parts under $10, and refrigerant 150% to 300% per pound. Labor isn't marked up; it's priced from the tech's cost, overhead and margin, typically $95 to $225 an hour in 2026.

    Markup vs margin: markup is what you add to cost; margin is the share of the selling price you keep. A 50% markup is a 33% margin. This HVAC markup chart uses markup percentages and shows the margin each one gives you.

    What you'll find: Complete markup charts by category (equipment 35-50%, materials 30-60%, parts on a sliding scale from 50% to 300%+, 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.

    FREE PDF

    Every chart on this page on two printable pages, for the truck or the office: download the HVAC markup chart PDF. No email needed.

    01 — MARKUP VS PROFIT MARGIN

    HVAC markup vs profit margin. 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.

    MARKUP (WHAT YOU ADD TO COST)
    Cost$1,000
    Markup50%
    Selling price: $1,000 × 1.50$1,500
    Profit$500
    MARGIN (PERCENTAGE OF SELLING PRICE)
    Selling price$1,500
    Cost$1,000
    Profit$500
    Margin: $500 ÷ $1,50033.3%

    Same dollar profit, different percentages! 50% markup = 33% margin. This is why you need to understand both.

    Markup-to-margin conversion chart

    MARKUP25%20% margin
    MARKUP33%25% margin
    MARKUP43%30% margin
    MARKUP54%35% margin
    MARKUP67%40% margin
    MARKUP82%45% margin
    MARKUP100%50% margin
    MARKUP150%60% margin
    FORMULA

    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.

    TARGET PROFIT MARGINS FOR HVAC
    35–45%Installations
    50–60%Service work
    30–40%Commercial
    02 — EQUIPMENT MARKUP

    HVAC equipment markup chart. Start at Standard, then adjust.

    SHORT ANSWER: HOW MUCH DO HVAC COMPANIES MARK UP EQUIPMENT?

    Most residential HVAC companies mark up equipment 35% to 50% over cost, which is a 26% to 33% gross margin on the equipment line. Commercial equipment runs 15% to 35% because it is competitively bid. Small add-on equipment (thermostats, UV lights, filters) carries 50% to 200%.

    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

    EQUIPMENT TYPELOWSTANDARDHIGH
    Furnaces (Standard Efficiency)35%40%45%
    Furnaces (High Efficiency)40%45%50%
    Air Conditioners (14-16 SEER)35%40%45%
    Air Conditioners (18+ SEER)40%45%55%
    Heat Pumps (Standard)35%40%45%
    Heat Pumps (High Efficiency)40%45%50%
    Ductless Mini-Splits40%50%60%
    Air Handlers35%40%45%
    Condensing Units35%40%45%

    Commercial equipment

    EQUIPMENT TYPELOWSTANDARDHIGH
    Package Units (5-20 ton)25%30%35%
    Rooftop Units20%25%30%
    Chillers20%25%30%
    Boilers25%30%35%
    Large Commercial HVAC15%20%25%

    Accessories & small equipment

    ITEMLOWSTANDARDHIGH
    Thermostats (Basic)50%75%100%
    Thermostats (Smart)50%75%100%
    Air Filters100%150%200%
    Humidifiers50%60%80%
    UV Lights60%80%100%
    Air Purifiers50%70%100%
    Zoning Systems40%50%60%

    Brand-based markup variations

    Premium BrandsCarrier, Trane, Lennox+5–10%Brand reputation justifies premium pricing
    Value BrandsGoodman, York, FrigidaireStandard or −5%Price-conscious customers, more competition
    Specialty / NicheMitsubishi, Daikin+10–20%Less competition, specialized features
    WHY DIFFERENT MARKUPS?
    Lower markup on large equipment:

    Customers price shop, competitive market, but lower % means higher $ profit (35% on $5,000 = $1,750).

    Higher markup on small items:

    Customers don't price shop, convenience factor (100% on $150 = $150 profit).

    Commercial lower than residential:

    Facility managers know costs, competitive bidding, volume makes up for lower margin.

    03 — TRY IT: MARKUP CALCULATOR

    Try it: markup calculator. 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

    40% margin on $3,600 cost

    Profit

    $2,400

    Markup on cost

    66.7%

    Open the full markup calculator

    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.

    SKIP THE MATH ON EVERY QUOTE

    Set your markups once in EstimateKit and every quote you build applies them by category. $49 a month for your whole team, 14-day free trial, no credit card.

    Start free trial →
    04 — PARTS, MATERIALS AND SUPPLIES

    HVAC parts and materials markup. Refrigerant at 200%. Screws at 300%. Both are normal.

    SHORT ANSWER: WHAT IS A NORMAL MARKUP ON HVAC MATERIALS?

    30% to 60% on major materials (line sets, duct, insulation, electrical), 100% to 300% on small supplies, and 150% to 300% on refrigerant per pound. Repair parts usually follow a sliding scale: about 50% on expensive parts, 200% to 400% on cheap ones.

    Major materials

    MATERIALLOWSTANDARDHIGH
    Refrigerant (per lb)150%200%300%
    Copper Line Sets30%40%50%
    Flex Duct30%40%50%
    Sheet Metal Duct25%35%45%
    Insulation40%50%60%
    Registers/Grilles40%50%70%
    Electrical Components40%60%80%
    Condensate Pumps40%50%60%
    TXV Valves50%60%80%

    Small supplies (often not itemized)

    Screws, fasteners200-300%
    Tape, sealants150-250%
    Wire nuts, connectors200-300%
    Mounting brackets100-200%
    Misc hardware200-400%

    HVAC parts markup chart (sliding scale)

    For repair parts, most shops don't use one percentage. They use a sliding scale, often called matrix pricing: the cheaper the part, the higher the multiplier. That way a $6 fuse doesn't sell for $8, and a $400 control board doesn't sell for $1,600. Treat this as a starting point and tune it to your market.

    PARTS MARKUP BY PART COST
    Your costMultiplierMarkupExample
    Under $10×4.0–5.0300–400%$6 part → $24–30
    $10–$50×3.0200%$25 capacitor → $75
    $50–$100×2.5150%$80 part → $200
    $100–$250×2.0100%$180 part → $360
    $250 and up×1.5–1.7550–75%$400 part → $600–700

    Labor is priced separately (next section). If you sell flat rate, the part price is built into the task price instead; the price book guide shows how to set that up, and EstimateKit's HVAC quoting software prices each flat-rate repair from your hourly rate and parts markup.

    Disposal fees

    Old thermostat$25-50
    Furnace removal$100-150
    AC unit removal$75-125
    Full system removal$200-300

    Pass through at cost + 10-20% handling markup. Never eat disposal costs.

    OPTION 1: PERCENTAGE LINE ITEM

    Add "Materials & Supplies: $150" to every quote (calculate as 5-8% of equipment + major materials)

    OPTION 2: FLAT FEE

    Small job (<$1K): $50 · Medium ($1K-5K): $100 · Large (>$5K): $200

    WHY REFRIGERANT HAS 200-300% MARKUP

    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.

    05 — LABOR MARKUP AND HOURLY RATES

    HVAC labor markup and hourly rates. Not a markup: 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.

    STEP 1 · TRUE LABOR COST$25/hr wage + 35% burden$33.75/hr
    STEP 2 · OVERHEAD$100K overhead ÷ 1,500 hrs$66.67/hr
    STEP 3 · TOTAL COST$33.75 + $66.67$100.42/hr
    STEP 4 · 40% MARGIN$100.42 ÷ 0.60$167/hr

    Standard labor rates 2026

    SERVICE TYPELOWSTANDARDHIGH
    Installation (Residential)$100/hr$125/hr$150/hr
    Service/Repair$95/hr$120/hr$145/hr
    Emergency Service$150/hr$175/hr$225/hr
    Commercial Install$125/hr$150/hr$200/hr
    Commercial Service$110/hr$135/hr$175/hr

    Or use flat rate pricing

    Instead of hourly, charge flat rate per task. Flat rate rewards efficiency—finish faster, keep same price:

    Furnace installation$800-1,200
    AC installation$800-1,200
    Thermostat install$150-250
    Filter change$75-125
    Tune-up$150-200
    Diagnostic$95-125

    Helper / apprentice rates

    Lead tech$125/hour
    Helper$75-85/hour
    Apprentice$65-75/hour
    06 — ADJUSTING FOR MARKET POSITION

    Adjusting HVAC markup for your market. Three factors move you off the standard.

    The charts show industry standards. Adjust for YOUR situation using these factors:

    FACTOR 1: MARKET POSITION
    Budget / Value (Bottom 25%)USE LOW END OF RANGESEquipment: 30-35% · Target margin: 25-30% · Strategy: Volume
    Mid-Market (Middle 50%)USE STANDARD RANGESEquipment: 35-45% · Target margin: 35-40% · Strategy: Balance
    Premium (Top 25%)USE HIGH END OF RANGESEquipment: 45-55% · Target margin: 45-55% · Strategy: Value & service
    FACTOR 2: GEOGRAPHIC MARKET
    High cost of living+10-20% to all markupsSF, NYC, Boston, Seattle
    Mid-cost areasUse standard markupsMost major cities
    Low cost areas-5-15% from standardRural, small towns
    FACTOR 3A: COMPETITION DENSITY
    High (20+ contractors)Standard or slightly below
    Medium (5-15)Standard markups confidently
    Low (1-5)Can use higher markups
    FACTOR 3B: EXPERIENCE LEVEL
    New (<2 years)Standard or slightly below
    Established (3-10 years)Standard to high
    Very established (10+ years)High markups justified
    YOUR MARKUP = YOUR VALUE

    Your markup should reflect your value proposition. Premium service, faster response, longer warranties, and more experience all justify higher markups.

    07 — WORKED EXAMPLES

    Worked HVAC markup examples: three quotes. 38%, 60% and 45% margin.

    Example 1: Standard AC replacement

    Equipment (Goodman 3-ton 16 SEER): $2,400 × 1.40$3,360
    Materials (line set, electrical): $400 × 1.40$560
    Labor: 8 hours × $125/hr$1,000
    TotalProfit margin: ~38%$4,920

    Example 2: Service call with repair

    Diagnostic fee (includes 1st hour)$125
    Capacitor: $25 × 3.0 (200% markup)$75
    Additional labor: 0.5 hrs × $125$62.50
    TotalProfit margin: ~60% (service work higher margin)$262.50

    Example 3: Premium system with add-ons

    Carrier 18 SEER variable speed: $4,200 × 1.50$6,300
    Smart thermostat: $200 × 1.75$350
    UV light air purifier: $250 × 1.80$450
    Materials: $500 × 1.40$700
    Premium install labor: 10 hrs × $150$1,500
    TotalProfit margin: ~45%$9,300

    For more detailed pricing examples and strategies, see our complete guide on how to price HVAC jobs.

    QUOTES LIKE THESE, FROM YOUR PHONE

    Build quotes like these from your own price book with your markups already in, then send them for the customer to approve online. Try it free for 14 days.

    Start free trial →
    08 — 5 MARKUP MISTAKES TO AVOID

    5 HVAC markup mistakes to avoid. Where the money leaks, and the fix for each.

    01
    Using Same Markup for EverythingDon't apply 40% to equipment, materials, AND labor. Each category has different standards.
    FIXUse the charts—different markup for different items.
    02
    Markup Too Low"I'll only mark up 20% to be competitive." A 20% markup is a 17% margin, and you can't survive on that.
    FIXMinimum 35% markup on equipment, 30% overall margin.
    03
    Not Tracking Actual CostsGuessing your costs means guessing your markup.
    FIXTrack every dollar spent. Know true costs.
    04
    Forgetting Overhead"Equipment costs $2,000, I sell for $3,000, I made $1,000!" No—after overhead, you made $200.
    FIXFactor overhead into your pricing formula.
    05
    Never Updating MarkupBuilt price book in 2020, costs up 25%, still using 2020 markup.
    FIXUpdate markup quarterly to match cost changes.

    Build a proper price book with our HVAC price book template guide to avoid these costly errors.

    09 — FAQ: HVAC MARKUP PERCENTAGES

    Most residential HVAC companies mark up equipment 35% to 50% over cost, a 26% to 33% gross margin on the equipment line. High-efficiency and ductless equipment sits at the top of that range. Commercial equipment runs 15% to 35% because it is competitively bid.

    30% to 60% on major materials such as line sets, duct, insulation and electrical components, 100% to 300% on small supplies like fasteners and tape, and 150% to 300% on refrigerant per pound.

    Most shops use a sliding scale: roughly 300-400% on parts under $10, 200% on $10-$50 parts, 150% on $50-$100, 100% on $100-$250 and 50-75% on parts over $250. Labor is priced separately.

    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. A 40% markup is a 28.6% gross margin, and rent, trucks, office staff, insurance and warranty callbacks all come out of that before any profit. It is a normal, fair number for quality work.

    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.

    10 — USE THIS CHART TO PRICE PROFITABLY

    Use this HVAC markup chart to price profitably. Stop guessing. Start using proven percentages.

    Bookmark this page and reference it when building your price book or pricing jobs.

    KEY TAKEAWAYS
    →Equipment: 35-50% markup (residential), 15-35% (commercial)
    →Materials: 30-60% markup depending on item
    →Labor: Calculate selling rate (not simple markup)
    →Parts: sliding scale, about 50% on parts over $250 up to 300%+ on parts under $10
    →Adjust for your market position and competition
    START USING THESE MARKUPS TODAY
    01Open your price book
    02Apply appropriate markup to each category
    03Test on next 5 quotes
    04Track profitability and adjust

    Stop guessing. Start using proven HVAC markup percentages.

    HVAC ESTIMATING SOFTWARE — $49/MONTH

    Set your markups once. Every quote uses them.

    Apply your markup to the price book by category, then build quotes from it. EstimateKit also runs customers, jobs and invoices for your whole team, up to 25 people.

    Start Free Trial →$49/month for your whole team · 14-day free trial
    →Markup applied to your price book by category
    →100 common HVAC materials pre-loaded
    →Customer records and equipment
    →Job scheduling & calendar
    →Up to 25 team members included