How to price an air conditioning job

Every cost guide on this subject is written for the person buying. This one is written for the person quoting. Published UK trade ranges throughout, with where each figure came from, because what you charge is yours to decide.

Updated 4 August 2026 · 9 min read

The build-up, in the order you work it out

A finished air conditioning price is four things added together, and the reason the cost guides are no use to you is that they only ever publish the total.

  1. Equipment, bought at trade and sold on at a markup.
  2. Labour, priced per zone or by the day.
  3. Materials, usually as an allowance that runs out and then bills per metre.
  4. Extras, which is where the margin quietly leaks.

1. Equipment: cost plus markup

UK trade guidance describes marking the unit supply cost up by 15% to 25% before it reaches the customer. That is not free money: it covers sourcing, delivery, checking the kit is right, and carrying the warranty conversation for the next five years.

The thing worth being precise about is that markup and margin are different numbers, and confusing them prices work low in a direction that always favours the customer.

Brand matters to the number and to the customer. Published figures put Mitsubishi Electric and Daikin roughly 15% to 25% above an equivalent kW from the budget end, and a customer who has been quoted three times will ask why. Put the make, model and kW on the line so the answer is already on the page.

2. Labour: per zone, or per day

Both conventions are in normal use in the UK.

London and the South East run 20% to 30% above national on the finished job. If you are reading a national figure and working in Zone 3, it is not your figure.

3. Materials: the allowance that runs out

This is the shape that makes air conditioning different from most trades, and the one a generic quoting app cannot express. The convention is that a standard install includes a set length of pipework, most often three metres, and anything beyond it bills per metre.

Published 2026 rates for the overage:

At the retail end, one London installer publishes £80 to £120 a metre beyond their three included, which tells you how wide the range is and why you should not take anybody else’s number.

Price each run separately on a multi-split. Trade guidance is explicit about this and it is the single easiest place to lose money: three bedrooms averaged at “about 5 metres each” is a guess, and the guess is always low on the awkward one.

4. The extras, which is where it leaks

Every one of these is a decision made on site, and every one of them is a line somebody forgets.

Itemise domestic. Consider not itemising commercial.

Trade guidance splits here, and the split is worth knowing because it looks like a contradiction.

For domestic work, an itemised quote converts better and produces fewer disputes than a single headline figure. A homeowner comparing three quotes cannot compare three numbers, but they can compare three lists, and yours is the one that explains itself.

For commercial work, the advice is a single project price with a detailed scope and an exclusions list, because a procurement contact handed thirty line items will negotiate thirty line items.

The exclusions list is the most valuable part of the quote

Every source consulted for this guide converged on the same finding: the arguments after a job are almost never about the price. They are about something that was assumed and never written down.

The same five, every time:

Add an assumptions list too, which does a different job: an exclusion says “this is not in the price”, an assumption says “the price holds while this is true”. “Pipe runs are as measured at survey” is what protects a fixed price against a wall nobody could see behind.

The compliance furniture, and why it wins work

Customers are told to check these before choosing an installer, so a quote that already answers them is a quote that is easier to say yes to.

Where the money actually is

Installations are the least valuable thing on your price list over five years. Published UK service contract rates are £150 to £400 per indoor unit per year domestic and £300 to £600 commercial. Fifty units on annual contracts at £200 is £10,000 a year of pre-scheduled revenue.

Most manufacturers require annual servicing to keep a five to seven year parts warranty alive. That makes the service plan a line on the installation quote, presented as warranty protection, rather than a cold call eleven months later.

Where these figures came from

Everything above is a published UK range as at August 2026, taken from installer-facing pricing guidance, homeowner cost guides used for cross-checking, and UK F-Gas and TM44 guidance. They are here so you know whether you are in the right order of magnitude. They are not a recommendation, they will be wrong somewhere, and they will be wrong within a year.

Your prices are yours. What a tool should do is stop you retyping them and stop you doing arithmetic in somebody’s hallway.

Put your own rates in once, then price a job in minutes

QuotePack keeps your rate card, works the sell price out from what the kit cost you and your markup, and turns “the run is seven metres” into the job plus the four metres beyond what is included. Then it sends the quote, tracks whether it was opened, and chases it.

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