Gross profit calculator for auto repair shops
Works out a repair shop's gross profit on labor, on parts, on sublet work and on all three together, and shows labor, parts and the overall figure beside a target.
Result
This is the result of the example in the form.
| Line | Sales | Cost | Gross profit | Percent of sales |
|---|---|---|---|---|
| Labor | $48,000.00 | $18,000.00 | $30,000.00 | 62.5% |
| Parts | $40,000.00 | $26,000.00 | $14,000.00 | 35% |
| Sublet | $2,000.00 | $1,600.00 | $400.00 | 20% |
| All three | $90,000.00 | $45,600.00 | $44,400.00 | 49.333% |
Labor gross profit: 62.5%. That is inside the typical range of 60% to 75% for labor gross profit. The usual target is 70%.
These figures are for a general repair shop. A tire shop or a heavy-duty shop runs different numbers. The range is given as typical by WickedFile, and the usual target as what shops aim for by Elite Worldwide and PartsTech. Neither is a survey of what shops earn.
Parts gross profit: 35%. That is below the typical range of 40% to 50% for parts gross profit. The usual target is 50%.
These figures are for a general repair shop. A tire shop or a heavy-duty shop runs different numbers. The range is given as typical by WickedFile, and the usual target as what shops aim for by Elite Worldwide. Neither is a survey of what shops earn.
Parts are below the typical range. At the same parts cost of $26,000.00, sales of $52,000.00 would reach the usual target of 50%. That is $12,000.00 more than the $40,000.00 sold.
Sublet has no target here, so its figure is shown alone.
Overall gross profit: 49.333%. That is below the typical range of 50% to 60% for gross profit across labor, parts and sublet. The usual target is 60%.
These figures are for a general repair shop. A tire shop or a heavy-duty shop runs different numbers. The range is given as typical by WickedFile, and the usual target as what shops aim for by PartsTech. Neither is a survey of what shops earn.
How this is worked out
Gross profit = sales − cost. As a percent of sales: gross profit ÷ sales. A line with no sales has no percent.
For labor, the cost is what the technicians are paid, with what the shop pays on top of wages. For parts and for sublet, it is what the shop paid for them.
The line for all three is labor, parts and sublet added together: total sales − total cost, and that ÷ total sales.
For labor or parts below its typical range: sales needed = cost ÷ (1 − usual target). The difference is the sales needed − the sales made.
Sales, cost and gross profit are exact to the cent, so the line for all three is the sum of the three lines as they are shown.
This is arithmetic, not accounting or tax advice.
Wenmar Pro is shop management software from the people who make this site.