Maintenance Agreement Calculator
A maintenance agreement is a promise to show up twice a year whether or not it's convenient. Enter the true cost of delivering those visits — burdened labor, travel, materials, admin — and get the annual and monthly plan price, the contribution each member leaves, and the three-year value a member represents at your renewal rate.
Method and content reviewed October 1, 2026 · formulas checked against a test suite · runs entirely in your browser
Annual price = (Visits × Cost per visit + Admin) ÷ (1 − Target margin)(2 × $82.00 + $50.00) ÷ 0.70 = $305.71The honest rule this tool enforces: a plan must be profitable on its own price — upsell revenue is an expectation, not a subsidy for underpricing. Bill monthly to flatten the cash curve, schedule visits in your slow season, and reprice annually: a plan set three years ago is priced for a business that no longer exists.
HVAC: where the number comes from
An HVAC company prices a two-visit annual plan: 1.5 tech hours per visit at a $38 burdened rate, $15 of travel, $10 of consumables, plus $50/year of admin per member. (Illustrative example — use your own costs.)
| Input | Value |
|---|---|
| Visits per year | 2 |
| Cost per visit | 1.5 hrs × $38 + $15 + $10 = $82 |
| Admin per member/year | $50 |
| Target margin | 30% |
| Member repair discount | 10% |
| Renewal rate | 80% |
Result: $305.71/yr or $25.48/mo — each member worth $904 over three years
The plan earns $91.71 of contribution on its own price — the upsell is upside, not subsidy. At 80% renewal the three-year member value is 2.44× year one, which is why agreements are the flattest, most valuable revenue line in a service business.
Load this example into the calculatorThe calculation
| Annual fulfillment cost | 2 × $82 + $50 = $214.00 |
| Annual plan price | $214 ÷ 0.70 = $305.71 |
| Monthly equivalent | $305.71 ÷ 12 = $25.48/mo |
| Contribution per member | $305.71 − $214 = $91.71 |
| Expected upsell | 40% × $180 × 0.90 = $64.80 |
| Year-one member value | $305.71 + $64.80 = $370.51 |
| 3-year value at 80% renewal | $370.51 × 2.44 = $904.05 |
How this calculator works
Every result comes from the formulas below — the math shown is the math used. Change any input and results update instantly in your browser; nothing is sent to a server.
- Cost per visit:
Visit Cost = Tech Hours × Burdened Rate + Travel + MaterialsUse the loaded labor cost, not your selling rate — otherwise profit is counted twice. - Annual price (margin-correct):
Annual Price = (Visits × Visit Cost + Admin) ÷ (1 − Target Margin) - Expected upsell per member:
Upsell = Visit Finding Rate × Avg Extra Work × (1 − Member Discount)Probability-weighted expectation — not revenue to rely on. - Member value over three years:
3-yr Value = Member Value × (1 + Retention + Retention²)Year one, plus the renewal-rate-weighted years two and three.
What the result means
The plan price is the fulfillment cost divided so the margin holds — the contribution row is what each member leaves to cover overhead and net. The member-value rows add the probability-weighted upsell and the renewal curve, which is why members are worth multiples of their fee over three years.
When to use it
Use it to launch or reprice a maintenance plan — and every year after, because a plan priced three years ago is priced for a business that no longer exists.
Want the concept behind the math in depth? Read How to Price a Maintenance Agreement (So It's Profitable on Its Own) or Truck Roll Cost: What a Service Visit Really Costs Before Anyone Touches a Tool.
Common mistakes
- Pricing the plan thin and justifying it with upsell revenue that is an expectation, not a promise.
- Costing visits at the selling rate instead of the loaded labor cost — profit gets counted twice.
- Forgetting the drive: an agreement far out is a different product, and the Truck Roll Calculator prices it.
Frequently asked questions
How do I price a maintenance agreement?
From the cost of delivering it. Total the visits' true cost — burdened tech hours, travel, consumables, plus annual admin — then divide by (1 − target margin). A two-visit plan costing $274 a year to deliver prices at $391 with a 30% margin: $32.58 a month. Price the plan on its own math; never on the hope of repair upsell.
Should repair upsell revenue justify a cheaper plan?
No — and this is the discipline that keeps agreement programs profitable. The upsell is an expectation: 40% of visits finding $180 of work is $72 expected, not $72 received. Plans priced thin and justified by upsell become loss-makers the first season the finding rate drops. Price the plan to carry itself; treat the upsell as upside.
How many visits should a plan include?
Two a year is the residential standard for HVAC (one per season); plumbing and electrical often carry one. More visits mean more cost to recover and more chances to find work — but each visit must still be costed honestly, including the drive, which is why an agreement forty minutes out is a different product from one ten minutes away.
Should I bill monthly or annually?
Monthly, usually. Annual billing concentrates cash in signup month and turns the agreement into a lumpy, seasonal payment — exactly the pattern recurring revenue exists to fix. The monthly equivalent here is the annual price divided by twelve with no discount assumed; if you offer a pay-annual discount, price it deliberately.
What renewal rate should I expect?
Well-run programs commonly retain 75–85% of members a year. Below 70%, you're replacing members faster than most shops can sell them. The biggest retention drivers are unglamorous: showing up on time, thorough inspections, and clear communication about what was found — not the discount.
Agreement revenue is the flat line in a seasonal year — see how much smaller it makes the slow-season gap.
Size the slow-season reserve →Related tools and guides
Maintenance Agreement Calculator is part of RateCraft, a set of free pricing and estimating tools for contractors and service businesses. Results are calculated entirely in your browser and are estimates for planning purposes — see our disclaimer and methodology.