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Auto repair & detailing

Auto Repair Markup Calculator

Apply a markup to what a repair costs you and see the margin that markup actually produces.

Your numbers

$
%

Result

Price $406
Gross profit $126
Margin that gives you 31.0%
A 45% markup on $280 prices the job at $406, which is 31.0% margin, not 45%.

Markup is measured against your cost, margin against the price you charge. A 50% markup is a 33.3% margin, not a 50% one. Pricing off the wrong one is the most common way a job that looked profitable turns out not to have been.

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What moves the number

  • Whether the cost being marked up is the full cost or only the part price.
  • Parts and labour usually carry different markups, because they carry different risk and handling cost.
  • Warranty exposure, which is a real cost that markup has to cover.

Where this one goes wrong

Applying a margin target as if it were a markup. A 40 percent markup is roughly a 29 percent margin. If you wanted 40 percent margin you needed a 67 percent markup, and the gap is invisible per job and large across a year.

Questions

About this calculator

What markup gives a 50 percent margin?

One hundred percent. Doubling your cost is the only way to keep half the selling price. A 50 percent markup produces a 33 percent margin.

Should parts and labour carry the same markup?

Rarely. Parts tie up cash, carry warranty risk and can be price-checked online. Labour carries your overhead. Pricing them identically is simpler rather than correct.

Does marking up shop supplies make sense?

It is more defensible to show supplies as a visible line at a fair figure than to bury the cost in a higher labour rate. Customers accept a stated charge more readily than one they discover.

How useful was this calculator?

Not rated yet. Yours would be the first.

The formula

price = cost x (1 + markup%); margin = profit / price

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How to use this calculator

  1. Your cost ($). Enter your own figure; the page starts at $280.
  2. Markup on cost (%). Enter your own figure; the page starts at 45%.

The result updates as you type, so you can try a figure, see what it does to price, 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

InputValue
Your cost$280
Markup on cost45%

What comes out

ResultValue
Price main result$406
Gross profit$126
Margin that gives you31.0%

A 45% markup on $280 prices the job at $406, which is 31.0% margin, not 45%.

How sensitive the answer is

Holding everything else steady and changing only your cost, this is what happens to price. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.

Your cost ($)Price
$140 $203
$210 $304.50
$280 example above $406
$420 $609
$560 $812

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

Your cost ($)
A money amount, starting at $280.
Markup on cost (%)
A percentage, between 0 and 500, starting at 45%.

What the results tell you

ResultWhat it is
PriceThe headline result. A money figure.
Gross profitA money figure.
Margin that gives youA percentage.

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.