A few hours can change the account.
In this illustrative example, 28 monthly paid hours at a $24 loaded labor cost plus $228 in other account costs totals $900. At a $1,200 contract price, the modeled margin is 25%.
If actual paid time rises to 34.25 hours while the other entered costs stay the same, total modeled cost becomes $1,050. Margin at the existing price falls to 12.5%. Restoring a 25% target would require $1,400: a $200, or 16.67%, increase. This is an arithmetic scenario, not a recommended or agreed price increase.
Review these five items first.
- Scope: compare the original task list with the work now expected. Record added areas, frequencies and service requests.
- Time: include all paid person-hours, setup and allocated travel. Use a representative period and note unusual events.
- Rates: update wages and employer costs. Hours alone do not capture a wage increase.
- Other costs: revisit supplies, equipment and overhead. The calculator only changes what you enter.
- The agreement: check the actual renewal date, notice requirements and commercial terms before proposing a change.
Actual hours replace planned hours.
Do not add actual hours to the original estimate. The comparison calculates each scenario separately. If the scope has materially changed, rebuild it in the full workbench so the next estimate reflects the work you are selling.
Does this send a renewal notice?
No. It helps you understand the account and model pricing. You manage the customer conversation and the agreement.
Must I raise the price to the target?
No. The target is one scenario. You may also review scope, service frequency or production assumptions. Customer acceptance is a separate commercial decision.
Can I save different renewal scenarios?
Yes, in Pro. Save separate named estimates, export a portfolio backup and retain the assumptions behind each version.