What Is the Difference Between Hourly Cost and Hourly Price in Labor Types?

Overview
When configuring Labor Types in X-PRO, you will see two important fields: Hourly Cost and Hourly Price. Understanding the difference between these values helps you accurately track labor expenses and calculate profitability on service calls.

Hourly Cost:

Hourly Cost represents the internal cost of labor to your company for each hour worked.

This typically includes:

• Employee wages
• Contractor costs
• Labor-related overhead expenses

Example

If a technician costs your company $30 per hour, the Hourly Cost should be set to $30.

Hourly Price

Hourly Price represents the amount billed to the customer for each hour of labor. This is the rate that appears on quotes, invoices, or service call billing.

Example

If you charge your customer $75 per hour for a technician's work, the Hourly Price should be set to $75.

How They Work Together

The difference between the Hourly Price and Hourly Cost determines your labor profit margin.

Example Scenario

Suppose a technician works for 4 hours:

• Hourly Cost: $30/hour
• Hourly Price: $75/hour

Calculation

• Total Labor Cost = 4 × $30 = $120
• Total Labor Revenue = 4 × $75 = $300
• Labor Profit = $300 − $120 = $180

Benefits of Using Both Fields

• Track actual labor expenses.
• Calculate project and service call profitability.
• Generate accurate customer billing.
• Compare labor costs against revenue for better business insights.

Summary

• Hourly Cost = What the labor costs your company.
• Hourly Price = What you charge your customer for that labor.
• The difference between the two values determines your labor profit on service calls and projects.

Updated on: 07/15/2026