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Auto repair & detailing

Auto Repair Profit Calculator

See what a repair leaves after parts, burdened labour and the shop overhead the job consumed.

Your numbers

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Result

Gross profit $45,800
Gross margin 61.1%
Total direct cost $29,200
Profit per working day $2,082
That is $45,800 at a 61.1% margin, about $2,082 for every working day. Overhead still has to come out of it.

Gross profit is what is left after the cost of doing the job. Overhead comes out of that: the building, the office wages, the vans, insurance, software and advertising. A healthy gross margin still loses money if overhead is larger.

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What moves the number

  • Bay time, which is the scarce resource. A job occupying a lift for a day has a different overhead claim from one that takes an hour.
  • Parts margin, which for many shops is a larger share of profit than labour.
  • Whether diagnostic time was billed or absorbed.

Where this one goes wrong

Judging a job by its invoice total. A large ticket that tied up a lift for two days while waiting on a part can return less than several small jobs through the same bay.

Questions

About this calculator

Is parts or labour the bigger profit source?

It varies by shop, and knowing which is yours changes how you price. Shops that assume labour carries the business are often wrong, and shops that discount parts to win work frequently give away most of the job's profit.

How should bay time be accounted for?

As the constraint it is. Overhead per bay hour is a more useful figure than overhead per job, because it makes the cost of a vehicle sitting waiting on parts visible.

What about warranty work?

Cost it honestly, including the labour you are not reimbursed for. Manufacturer reimbursement rates frequently sit below a shop's own door rate.

How useful was this calculator?

Not rated yet. Yours would be the first.

The formula

gross profit = revenue - direct costs

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How to use this calculator

  1. Revenue ($). Enter your own figure; the page starts at $75,000.
  2. Direct labour ($). Enter your own figure; the page starts at $16,000.
  3. Materials and equipment ($). Enter your own figure; the page starts at $11,000.
  4. Other direct costs ($). Enter your own figure; the page starts at $2,200.

The result updates as you type, so you can try a figure, see what it does to gross profit, 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
Revenue$75,000
Direct labour$16,000
Materials and equipment$11,000
Other direct costs$2,200

What comes out

ResultValue
Gross profit main result$45,800
Gross margin61.1%
Total direct cost$29,200
Profit per working day$2,082

That is $45,800 at a 61.1% margin, about $2,082 for every working day. Overhead still has to come out of it.

How sensitive the answer is

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

Revenue ($)Gross profit
$37,500 $8,300
$56,250 $27,050
$75,000 example above $45,800
$112,500 $83,300
$150,000 $120,800

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

Revenue ($)
A money amount, starting at $75,000.
Direct labour ($)
A money amount, starting at $16,000.
Materials and equipment ($)
A money amount, starting at $11,000.
Other direct costs ($)
A money amount, starting at $2,200.

What the results tell you

ResultWhat it is
Gross profitThe headline result. A money figure.
Gross marginA percentage.
Total direct costA money figure.
Profit per working dayA 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.