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Auto repair & detailing

Auto Repair Shop Profit Calculator

Work out what the shop keeps across a month once every bay, technician and fixed cost is counted.

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 utilisation, which caps revenue no matter how good the pricing is.
  • Technician efficiency against book time across the whole team.
  • Fixed overhead, which continues whether the bays are full or empty.

Where this one goes wrong

Growing revenue by adding low-margin work to fill bays. It raises the top line and can lower the bottom one, because the added work consumes the same bay hours as better work would have.

Questions

About this calculator

What is the most useful shop metric?

Gross profit per bay hour. It captures pricing, efficiency and mix in one number, and it makes the cost of an idle or badly used bay visible.

Should I add a technician or raise the rate?

Raising the rate takes effect immediately and adds no cost. Adding a technician adds cost before it adds revenue and only pays if there is genuinely unmet demand. Test the rate first.

How do I know whether the shop is at capacity?

Compare hours sold against hours available across several weeks. Most shops that feel full are selling well under their available bay hours.

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.