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Heating job price calculator

Price a boiler swap or a heat pump to the margin you need. Switch between 20% and 0% VAT and take a Boiler Upgrade Scheme grant off what the customer pays.

Equipment and materials

Labour

Pricing

Customer pays
Quote total

What the customer pays, after any grant

Direct job cost
Labour cost
Price before tax
Gross profit
Same as a markup of
VAT
Total inc VAT
Grant
Deposit to ask for
See the Heating Engineer Kit

Rounded to the cent line by line. A guide, not tax advice.

How it works

  • Direct cost = boiler or heat pump + materials + labour (hours × people × cost per hour) + flue, disposal and notification costs.
  • Price = direct cost ÷ (1 − target margin).
  • VAT: 20% on boiler work if you are registered. Installing energy-saving materials such as heat pumps in a home in Great Britain is 0% until 31 March 2027.
  • Grant: under the Boiler Upgrade Scheme the installer claims the grant and takes it off the customer's bill. VAT is worked out on the full price.

The Boiler Upgrade Scheme gives £7,500 towards an air source or ground source heat pump in England and Wales, and only an MCS-certified installer can apply for it. Boiler and other gas work must be done by a Gas Safe registered engineer. VAT registration is compulsory once taxable turnover passes £90,000 in a rolling 12 months.

Three worked examples

Each one was checked against an independent calculation. Type the same numbers above and you will get the same results.

Example 1

Combi boiler swap, VAT 20%

Equipment£1,350
Materials£420
Labour12 h × 1 × £28.00
Other costs£150
Target margin35%
Direct cost£2,256
Price before tax£3,470.77
Markup equivalent53.85%
VAT 20%£694.15
Total£4,164.92
Deposit£1,041.23

Example 2

Air source heat pump: 0% VAT and a 7,500 grant

Equipment£6,500
Materials£1,800
Labour40 h × 2 × £26.00
Other costs£600
Target margin35%
Direct cost£10,980
Price before tax£16,892.31
Markup equivalent53.85%
VAT 0%£0.00
Total£16,892.31
Grant−£7,500
Customer pays£9,392.31

Example 3

Not VAT registered: radiator and valve upgrade

Equipment£420
Materials£180
Labour8 h × 1 × £24.00
Other costs£40.00
Target margin40%
Direct cost£832
Price before tax£1,386.67
Markup equivalent66.67%
VAT 0%£0.00
Total£1,386.67

UK (VAT, CIS)

Now do it for every job.

£25

  1. Heating Engineer Quote, Invoice & Price Book
  2. Room Heat Loss & Radiator Sizing (Boiler or Heat Pump)
  3. Boiler & Heat Pump Install Quote (Good / Better / Best)
  4. Boiler Service Plan Tracker

4 spreadsheets · Excel and Google Sheets · blank, filled example and printable PDF

Get it nowSee what you get

One payment. Download for 365 days; the files are yours to keep. Sold on Whop.

Questions

Is there VAT on heat pump installation?

Not in a home in Great Britain until 31 March 2027: installing energy-saving materials, including air source and ground source heat pumps, is zero-rated. Boiler replacements are standard-rated at 20%.

How does the Boiler Upgrade Scheme grant appear on my quote?

Show the full price, then the grant as a deduction, then what the customer pays. You claim the grant after the install, so your cash flow has to carry it for a few weeks.

What margin should a heating engineer use?

Enough to cover your van, insurance, Gas Safe and MCS fees, call-backs and the hours you spend surveying and quoting. Work out your yearly overhead as a share of sales and add the profit you want.