Auto repair & detailing
Auto Repair Labor Cost Calculator
Work out what an hour of technician time actually costs the shop, before any of it reaches a customer's invoice.
Result
A planning estimate, not a quote. Access, the age of the equipment, what is found once it is opened up and local labour rates all move the real figure, sometimes a long way.
Get a Free Business AuditWhat moves the number
- Burden on top of the wage: payroll taxes, insurance, holiday, training and tool allowances.
- Non-billable hours. Time spent moving vehicles, waiting on parts and cleaning up is paid and not sold.
- Technician efficiency against book time, which decides how many billable hours an eight hour day actually produces.
Where this one goes wrong
Costing labour at the wage. A technician on a given hourly wage costs substantially more once burden and unsold hours are counted, and a shop that prices from the wage is losing money on every hour it sells.
Questions
About this calculator
What is labour burden in a shop?
Everything paid on top of the wage: employer taxes, workers compensation, insurance, benefits, holiday, training and often a tool or boot allowance. It varies by shop and by state, so calculate your own rather than using a rule of thumb.
Why do unsold hours matter so much?
Because they are paid. If a technician is paid for eight hours and sells six, the cost of the whole day has to be recovered across those six. Ignoring that understates your true hourly cost by a third.
Does a flat rate pay plan change this?
It changes who carries the risk, not the arithmetic. You still have to know what an hour costs to sell it profitably, and flat rate shops still pay for downtime in other ways.
The formula
total = hours x people x rate + parts + call-out, then sales tax
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How to use this calculator
- Hours on site (h). Enter your own figure; the page starts at 2.2 h.
- People needed. Enter your own figure; the page starts at 1.
- Labour rate charged ($). Enter your own figure; the page starts at $135.
- Parts and materials ($). Enter your own figure; the page starts at $180.
- Call-out or diagnostic fee ($). Enter your own figure; the page starts at $95.
- Sales tax (%). Leave at zero if you are quoting before tax.
The result updates as you type, so you can try a figure, see what it does to estimated total, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Hours on site | 2.2 h |
| People needed | 1 |
| Labour rate charged | $135 |
| Parts and materials | $180 |
| Call-out or diagnostic fee | $95 |
| Sales tax | 0% |
What comes out
| Result | Value |
|---|---|
| Estimated total main result | $572 |
| Labour | $297 |
| Before tax | $572 |
| Sales tax | $0 |
About $572: $297 of labour, $180 of parts and a $95 call-out.
How sensitive the answer is
Holding everything else steady and changing only labour rate charged, this is what happens to estimated total. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Labour rate charged ($) | Estimated total |
|---|---|
| $68 | $424.60 |
| $101 | $497.20 |
| $135 example above | $572 |
| $203 | $721.60 |
| $270 | $869 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Hours on site (h)
- Measured in h, between 0 and 400, starting at 2.2 h.
- People needed
- A number, between 0 and 40, starting at 1.
- Labour rate charged ($)
- A money amount, starting at $135.
- Parts and materials ($)
- A money amount, starting at $180.
- Call-out or diagnostic fee ($)
- A money amount, starting at $95.
- Sales tax (%)
- Leave at zero if you are quoting before tax.
What the results tell you
| Result | What it is |
|---|---|
| Estimated total | The headline result. A money figure. |
| Labour | A money figure. |
| Before tax | A money figure. |
| Sales tax | A money figure. |
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.