Cost of Service Calculator

Formula

The formula to calculate the total cost of service is:

\[ TC = (LC \cdot HW) + MC \]

Where:

$ TC $ is the Total Cost of Service ($).
$ LC $ is the Labor Cost per Hour ($).
$ HW $ is the Number of Hours Worked.
$ MC $ is the Cost of Materials ($).

Example

Let's say the labor cost per hour ($ LC $) is $50, the number of hours worked ($ HW $) is 8, and the cost of materials ($ MC $) is $200. Using the formula:

\[ TC = (50 \cdot 8) + 200 \]

We get:

\[ TC = 400 + 200 = 600 \]

So, the total cost of service ($ TC $) is $600.

What is Cost of Service?

Cost of service is the total amount charged for the completion of a job or project, which includes the labor costs, materials, and any other expenses. This calculation is crucial for businesses to determine the price of their services, ensuring that all costs are covered and a profit margin is included. It is also used by customers to estimate the expected price for a service.