IN THIS GUIDE ▾
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.
Every chart on this page on two printable pages, for the truck or the office: download the HVAC markup chart PDF. No email needed.
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.
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.
HVAC equipment markup chart. Start at Standard, then adjust.
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
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.
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
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.
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.
HVAC parts and materials markup. Refrigerant at 200%. Screws at 300%. Both are normal.
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
Small supplies (often not itemized)
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.
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
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.
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.
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
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:
Your markup should reflect your value proposition. Premium service, faster response, longer warranties, and more experience all justify higher markups.
Worked HVAC markup examples: three quotes. 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.
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.
5 HVAC markup mistakes to avoid. 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.
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.
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.
Stop guessing. Start using proven HVAC markup percentages.