How We Calculate Fair Prices
Transparency is at the heart of FairPrice. Here's exactly how we turn community-reported prices into actionable insights you can trust.
1. Community-Sourced Data
Every price on FairPrice comes from a real person who actually paid for a service. We don't scrape estimates or use theoretical calculators. When someone gets their plumbing fixed, AC serviced, or signs a rental agreement, they submit the exact amount they paid along with context (location, scope of work, provider name).
What we collect with each submission:
- ●Service type — What was done (e.g., “2BHK rent”, “brake pads replacement”)
- ●Price paid — The actual amount in local currency
- ●ZIP / PIN code — For location-specific pricing
- ●Job description — Scope, materials, complexity
- ●Provider name (optional) — For contractor fairness scores
- ●Date — When the service was completed
2. Location Matching
Prices vary significantly by location. A plumber in South Mumbai charges differently than one in Thane. We match your query to nearby areas using ZIP/PIN code prefixes:
How it works: When you search for a service in PIN 400051 (Bandra), we look at all submissions in the 400xxx range — covering the greater Mumbai area. This ensures enough data points for a meaningful range while keeping results locally relevant.
For Indian PINs: first 3 digits = district/region. For US ZIPs: first 3 digits = sectional center.
3. Time-Decay Weighted Averages
Prices change over time. A submission from last month is more relevant than one from a year ago. We use a time-decay algorithm that gives more weight to recent data:
| Submission Age | Weight | Impact on Average |
|---|---|---|
| Less than 3 months | 1.0 (full weight) | Maximum influence |
| 3 — 6 months | 0.8 | High influence |
| 6 — 9 months | 0.5 | Moderate influence |
| 9 — 12 months | 0.3 | Low influence |
| Over 12 months | 0.1 | Minimal (stale data) |
This means if prices have risen recently (as they did 14% in India in Q1 2026), our averages reflect the increase quickly rather than being dragged down by outdated data.
4. The Verdict System
When you enter your quote, we compare it against the weighted average and give you an instant verdict:
FAIR
Quote is within 10% of the area average
A BIT HIGH
Quote is 10-25% above average
OVERPRICED
Quote is more than 25% above average
5. Contractor Fairness Scores
When multiple submissions mention the same contractor or company, we calculate a Fairness Score (0-100) based on how their pricing compares to the area average:
- 90-100:Consistently fair pricing — excellent value
- 70-89:Generally fair with occasional premium pricing
- 50-69:Above average pricing — may be justified by quality
- Below 50:Significantly above area averages — approach with caution
6. Data Freshness Indicators
We're transparent about how current our data is. Every lookup result includes a freshness badge:
7. Trust Points & Data Quality
To prevent spam and ensure data quality, FairPrice uses a Trust Points system. Contributors earn points for verified submissions, which unlocks additional features:
Each verified price submission earns 10 trust points. This creates a virtuous cycle: contribute data → unlock features → get better pricing insights.
8. Privacy & Anonymity
All submissions are anonymous. We never display individual prices with identifying information. Only aggregated ranges, averages, and contractor-level scores are shown publicly. Your email is used solely for trust point tracking and optional price alerts — never shared with third parties. Read our full Privacy Policy for details.
Try It Yourself
Enter a service and your ZIP/PIN code to see our methodology in action — instant price ranges, freshness data, and a verdict on your quote.