How to Price Security Guard Contracts in 2026

Accurate pricing is one of the most important business decisions a security company will make heading into 2026. With rising wages, tighter labor markets, increasing compliance requirements, and growing client expectations, outdated pricing models can quietly erode margins or price you out of competitive bids.

Whether you are a seasoned operator or a new agency preparing your first pricing sheet, getting security guard pricing right means understanding your true costs, applying consistent margin logic, and using systems that prevent billing leakage. This guide walks you through how to set profitable, defensible rates for 2026 and introduces a practical rate card template to support smarter contract pricing.

Why Accurate Security Guard Pricing Matters in 2026

Security companies operate on thin margins, and small miscalculations can quickly compound across long-term contracts. In 2026, several pressures make pricing more complex than ever. Wage inflation continues across most states. Overtime rules are being enforced more strictly. Clients are demanding transparency around rates, while still pushing for competitive bids.

If your security guard rates do not fully account for overtime exposure, insurance increases, or administrative overhead, profitability suffers. On the other hand, pricing without structure makes it difficult to explain rates to clients or scale operations confidently.

A disciplined approach to contract pricing security protects your margins and strengthens client trust.

Cost Drivers That Determine Security Guard Pricing

Before setting bill rates, you must understand what it truly costs to staff a post. Many security companies underprice contracts because they focus only on hourly wages and overlook hidden costs.

Base Wages

Base pay is the foundation of your pricing. This includes minimum wage requirements, market-driven wage premiums, and differentials for armed versus unarmed guards. Wage pressure is one of the largest drivers of rising bill rates for security guards.

Overtime and OT Multipliers

Overtime is unavoidable in security operations. Extended shifts, overnight coverage, and emergency callouts all create OT exposure. Your pricing must reflect time-and-a-half or double-time rules where applicable.

Payroll Taxes

Employer-side payroll taxes such as Social Security, Medicare, and state unemployment must be factored into every billed hour. These costs increase automatically as wages rise.

Workers’ Compensation and Insurance

Security work carries higher workers’ compensation premiums than many industries. General liability, professional liability, and vehicle insurance costs also need to be spread across billable hours.

Uniforms, Training, and Licensing

Uniform issuance, guard cards, firearms permits, and required training all represent real costs. These are often overlooked when setting pricing but significantly impact margins.

Administrative Overhead

Back-office labor, scheduling, dispatch, compliance tracking, and accounting are part of every contract, even if they are not visible to the client.

Management Fees and Profit Margin

Finally, pricing must include a clear margin that supports business growth. Profit is not a leftover. It is a planned component of sustainable pricing.

Pricing Formula: How to Set Profitable Bill Rates

At its core, pricing follows a simple structure, but discipline is required to apply it consistently.

The basic formula is:

Total Labor Cost + Overhead + Desired Margin = Bill Rate

Start by calculating your fully burdened hourly cost. This includes wages, payroll taxes, insurance, and benefits. Next, allocate overhead costs such as admin labor, software, vehicles, and supervision across billable hours.

Once you know your total cost per hour, you can apply a margin. Most security contracts operate sustainably within a 10 to 30 percent margin range, depending on risk, contract length, and client reliability.

What matters most is consistency. Every proposal should follow the same logic so your pricing scales with your business.

Overtime Rules for 2026: W-2 and 1099 Differences

Overtime remains one of the most common sources of margin leakage. For W-2 guards, time-and-a-half applies once daily or weekly thresholds are crossed, depending on state law. Some jurisdictions also require double-time for extended shifts.

Holiday rates, premium shifts, and emergency coverage further complicate calculations. These costs should be explicitly passed through to clients rather than absorbed.

Independent contractor arrangements follow different rules, but misclassification risk is high in the security industry.

Legal disclaimer: Labor and overtime laws vary by jurisdiction and are subject to change. This article is for informational purposes only and does not constitute legal advice. Always consult federal and state labor guidance or legal counsel.

Using security guard billing software ensures overtime, holiday, and premium rates are calculated automatically and billed correctly every time.

2026 Rate Card Template: Calculator Included

A standardized rate card protects margins and simplifies sales conversations. For 2026, your rate card should include clear breakdowns that can be defended if clients ask how numbers were derived.

A strong rate card typically includes:

• An hourly bill rate calculator
• A visible cost breakdown by category
• A selectable margin range based on site risk
• Separate line items for overtime and holidays

Providing a downloadable calculator allows your team to model scenarios quickly without reinventing pricing for each proposal.

Download the 2026 Security Guard Rate Card Template and Calculator to build accurate pricing in minutes.

Three Sample Pricing Scenarios for 2026

Pricing varies widely by industry and risk profile. Consider these simplified examples.

These examples show how site conditions, overtime exposure, and guard expectations influence pricing. The goal is not to copy rates, but to understand how cost drivers change outcomes.

Creating a Security Company Price List for 2026

A standardized security company price list helps internal teams quote consistently and avoids ad-hoc pricing decisions.

Most price lists are structured by:

• Guard type, such as unarmed, armed, or mobile patrol
• Shift type, including day, night, or overnight
• Site risk level
• Overtime and holiday add-ons
• Mileage, fuel, or equipment pass-throughs

Standardization protects margins and makes pricing easier to explain to clients.

How Belfry Helps You Price and Bill Accurately

Pricing does not stop once a contract is signed. Execution matters just as much. Belfry connects timekeeping, payroll, and billing into one system, ensuring that what you schedule is what you pay and what you bill.

With Belfry, security companies gain:

• Automated timekeeping tied directly to payroll
• Configurable billing rules for OT, holidays, and differentials
• Real-time labor cost visibility
• Exportable billing summaries for finance teams

As a modern security workforce management software, Belfry prevents billing leakage, gives real-time visibility into labor costs, and generates exportable billing summaries your finance team can trust. Integration with security guard payroll software and security company payroll software ensures that what you pay guards aligns with what you bill clients.

Price Security Guard Contracts for 2026 With Confidence

Profitable pricing in 2026 requires more than intuition. It requires a clear understanding of costs, consistent formulas, and systems that enforce accuracy at scale.

Set competitive, compliant security guard rates with confidence. Download the rate card calculator and see how Belfry Software automates accurate payroll and billing. Book a demo today and take control of your contract pricing for 2026.