Originally published in March 2018. Last updated on January 30, 2025.
Estimating the price of a plumbing job can make or break your bottom line. When you get it right, it’s easier to make accurate estimates and turn higher profits. But without a good pricing process, you could end up losing money—and clients.
To stay ahead of competitors, you need to know how to price your services, estimate the time a job will take, and factor in material costs.
In this post, we’ll show you how to charge for plumbing work and estimate jobs faster so you can boost your earnings.
Here’s how to price a plumbing job and create better plumbing estimates:
1. Calculate your hourly labor cost
Start by determining how many plumbing technicians you’ll need on a job and how long you expect the work to take. Multiply the duration of the job by the number of technicians required.
For example, if a job takes 2 hours and requires 1 technician, the labor hours are:
2 hours x 1 technician = 2 hours of labor.
Next, calculate your hourly labor cost by adding up the hourly wage of each plumber, including taxes, workers’ compensation, and any other related employment costs. A markup of 20-30% is standard to cover these additional expenses.
Let’s do the math. if your hourly rate is $24, your formula would look like this:
$24 (hourly business rate) + 20% (estimated markup) = $28.80 (total hourly cost)
Then, multiply your labor time by your hourly labor cost to get your total labor cost:
2 x 28.80 = $57.60 (total labor cost)
What is the average hourly rate for a licensed plumber?
In the United States, the average hourly rate for a plumber is $29.59 USD, according to the Bureau of Labor Statistics. Your hourly wage and annual salary will depend on where you work, how much experience you have, and your job title.
As you price your services based on labor costs, remember to keep these averages in mind. This ensures that your technicians are compensated fairly and competitively.
2. Estimate your material cost
The next step in the pricing process is estimating your materials costs. For plumbing services, repairs, or installations that require extra materials—like fixtures, piping, or specialty tools—add the exact cost including taxes.
Here are some examples of materials to consider including for the following jobs:
| Plumbing service | Materials you may need |
| Water heater installation | Water heater, venting pipes, pressure valves, water and gas piping, thread compound, solder |
| Leaking pipe | Epoxy putty, pipe clamps, slip coupling, replacement pipes |
| Clogged drain | Chemical drain cleaner, plungers |
| Emergency services | Plumber’s putty, duct tape, washers |
| Burst pipe | Fittings, emery cloth, connectors |
To calculate your materials cost, use this formula:
(Sum of required materials costs) X (product sales tax rate) = (total material costs)
To continue our example, let’s say the cost of materials to fix a clogged drain totals $47.62 and your state’s sales tax is 5%. In this case, your total cost for materials would be $50.00 USD.
READ MORE: How to bid plumbing jobs and win more work
3. Calculate your overhead cost
Overhead costs are the operating expenses you pay to keep your plumbing business running smoothly every day. These costs might include:
- Business equipment (such as tablets, computers, or cell phones)
- Building rent
- Plumbing tools (like wrenches, plungers, or pipe cutters)
- Vehicles, fuel, and maintenance
- Licensing and certification
- Taxes and business insurance
- Plumbing advertising and marketing
- Plumbing software
Add up all of your overhead costs for the month, then calculate your hourly overhead costs use the following formula:
Total monthly overhead costs ÷ # of billable hours per month
If your monthly overhead costs are $4,000 and you and your team produce 500 billable hours every month, your overhead costs would be $8.00 per hour.
To calculate your overhead costs for a plumbing repair, use this formula:
Hourly overhead costs x # hours the job will take to complete
If you’re servicing a clogged drain and you estimate the job will take you two hours to complete, your overhead costs for the job will be $16.00 ($8 x 2).
4. Total your costs
Now, you’ll bring everything together. Add your labor, material, and overhead costs to get your plumbing cost estimate. This is what you’ll be spending out of your pocket (or your business account) to complete a job.
Using the same example below, our total cost formula would look like this:
$57.60 (labor) + $50 (materials) + $16 (overhead) = $123.60
5. Add your markup
Lastly, add your markup to the total cost estimate to ensure your pricing is profitable—not just breaking even. Markup is how much you charge on top of your costs to earn a profit. For example, if you want a profit margin of 25%, the cost of your job should account for 75% of the total price that you bill your customer.
To calculate the total price, use the formula:
Price = Cost ÷ (1 – profit margin)
Using the example above, the total price you should charge to achieve a 25% profit margin will be:
Price = $123.60 ÷ (1 – 0.25) = $123.60 ÷ 0.75 = $164.80
You’ll need to charge a markup of $41.20 on top of your cost of $123.60 to reach your 25% profit margin.
You can also enter your labor, materials, overhead expenses, and profit into Jobber’s service pricing calculator to find the total price of your plumbing job.
The most important step is to know your costs.
Do it quarterly. Do a review of what you actually are spending per job and overhead and variable, all that kind of stuff. Do it quarterly. Don’t obsess, don’t do it too frequently, but do it quarterly and have up-to-date data on what your actual costs are.
What do most plumbers charge per hour?
On average, plumbers charge customers between $45 and $200 per hour in the United States. This will depend on the job and timing, as well as the employee’s plumbing certification level. Other factors to consider when setting an average hourly price rate include:
- Location or region of service
- Local competitor prices for similar services
- Type of plumbing contract (residential, commercial, or industrial)
- How many team members or technicians are available to complete the work
Pro Tip: Many plumbers set their minimum service times at one or two hours to account for travel time or any other unexpected surprises on the job. This helps keep their schedule full and protects against doing jobs that cost more than they earn.
Additional pricing considerations for plumbers
Before you send an estimate to a prospective customer, make sure you’ve considered any other factors that may cut into your profits.
Letting your customers know about these added expenses from the get-go can keep you from eating the costs when the job is done.
Here are a few things to consider:
1. Type of plumbing job
How much you charge for a plumbing job will depend on the type of service and the tasks and materials required.
For example, for plumbing installations, you’ll have to consider costs for:
- Materials
- Labor
- Plumbing permits
Plumbing repairs, on the other hand, require costs for:
- Diagnostic time
- New parts
- Labor
2. Added labor time
Your pricing may vary based on the scope of work, accessibility, or even the age or condition of the client’s plumbing system.
Take into account these factors when pricing your plumbing services:
- The removal of garbage and debris from the job site
- Correcting any existing plumbing code violations in old or neglected properties
- Removing or replacing any deteriorated piping
- X-raying floors or walls before cutting or drilling
- Provision of backflow prevention devices where required
- Opening, repair, or replacement of walls or ceilings required to complete work
- Time required to shut down, drain, and refill water piping, etc.
- Servicing pipes, fixtures, or equipment in hard-to-access areas
Always complete an on-site assessment before sending an estimate. This will give you a chance to examine pipes, assess their general condition, and determine how easy or difficult they may be to get at.
3. Plumbing permits
For larger or more complicated plumbing jobs, you may need a permit to stay in compliance with local plumbing codes and regulations.
Permit requirements will vary by state, but most regions require a permit to:
- Installing new plumbing systems for new constructions or additions to existing buildings
- Replacing or upgrading a water heater
- Upgrades to the piping on an existing plumbing setup
- Moving plumbing elements, including pipes, fittings, and drains
- Emergency repairs that require fixing pipes of at least five feet in length
- All work involving sewer line maintenance
- Replacing old drain lines
Check your local government or state website to see what plumbing permits are required for your region.
If your project requires a permit, add the cost to your pricing formula, before applying your markup.
Average pricing for plumbing services
Here are the average price ranges for common plumbing services:
| Plumbing service | Price range |
|---|---|
| Water heater installation | $850 – $1,700 USD |
| Water heater repair | $200 – $1,000 USD |
| Fix a leak | $150 – $450 USD |
| Unclogging a drain | $150 – $350 USD |
| Toilet repair | $150 – $400 USD |
| Drain line repair | $225 – $1,175 USD |
| Water main installation | $625 – $2,700 USD |
| Faucet installation | $150 – $400 USD |
| Repiping a house | $350 – $2,100 USD |
| Septic tank cleaning | $300 – $600 USD |
How to create a plumbing estimate
Once you’ve calculated your pricing, you’re ready to create an estimate and send it to your client. You can write out your estimate by hand, fill in a plumbing estimate template, or use quoting software like Jobber.
With Jobber, you can customize your quote design with your company branding, add the job details, and even include product photos.
You can also suggest optional services or premium upgrades, like more expensive faucet options—right on the quote. Your customer can select the option that best suits their needs and watch their total automatically update before they approve.
Plus, Jobber automatically sends quote follow-ups to customers you haven’t heard back from, so you can be sure you’re never leaving work on the table.
What to include in your plumbing estimate
Your plumbing estimate should include:
- Your business name and logo
- Your business contact information
- Your client’s name and contact details
- A quote or estimate number (similar to an invoice number)
- A breakdown of the type of service you’ll be providing, including materials and costs
- How long the estimate is valid for (most expire within 30 days)
- The total cost for the service, including taxes and fees
With the correct information and a professional layout, your plumbing estimate can help you impress your clients and win more jobs.
If you’re just starting a plumbing business, knowing how to price a job will help you create estimates faster and win more work.
Once the job is complete, use Jobber’s free plumbing invoice template to send professional invoices in just a few clicks, and get paid for your work even faster.