# 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. This page describes the calculator and does not compute. The calculator is a web page with a form.

## What you enter

For one period, such as a month: labor sales and technician cost; parts sales and parts cost; and, optionally, sublet sales and sublet cost. Technician cost is what the technicians are paid, with what the shop pays on top of wages. Parts cost and sublet cost are what the shop paid for them.

A sublet field left empty is $0.00. Labor and parts are asked for: a shop that sold none of one writes a zero. At least one line must have sales.

Money may be written as 1234.5, 1,234.50 or $1,234.50, up to $99,999,999.99.


## 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.


## The targets

Labor, parts and the line for all three are each shown beside a target, and the page says whether the figure is below, inside or above the range.

For labor gross profit: a typical range of 60% to 75%, and a usual target of 70%.

For parts gross profit: a typical range of 40% to 50%, and a usual target of 50%.

For gross profit across labor, parts and sublet: a typical range of 50% to 60%, and a usual target of 60%.

Sublet has no target here, so its figure is shown alone.

The ranges and the targets are for a general repair shop, and come from the pages below. They are what those pages call typical and what they say shops aim for, not a survey of what shops earn.

- [WickedFile: Parts vs. Labor Margin: Why Most Auto Repair Shops Are Getting It Backwards](https://www.wickedfile.com/blogs/parts-vs-labor-margin-auto-repair/)
- [Elite Worldwide: Six Strategies to Keep Your Auto Repair Shop Profitable](https://eliteworldwide.com/info-center/six-strategies-to-keep-your-auto-repair-shop-profitable/)
- [PartsTech: 5 Keys to Maximizing Your Shop's Profits](https://partstech.com/resource/blog/the-keys-to-maximizing-your-shops-profits/)
- [Elite Worldwide: Keeping Your Shop Competitive and Profitable](https://eliteworldwide.com/info-center/keeping-your-shop-competitive-and-profitable/)

## A worked example

The page opens with this example, one month of a shop. Labor sales: 48000.00; Technician cost: 18000.00; Parts sales: 40000.00; Parts cost: 26000.00; Sublet sales (optional): 2000.00; Sublet cost (optional): 1600.00.

Labor gross profit: 62.5%. That is inside the typical range of 60% to 75% for labor gross profit. The usual target is 70%.

Parts gross profit: 35%. That is below the typical range of 40% to 50% for parts gross profit. The usual target is 50%.

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.

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%.

Gross profit for the period:

| 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% |


## A link to a filled-in form

Every field is in the address, so a filled-in form can be linked to, bookmarked and printed. Nothing is stored. The fields are labor_sales, technician_cost, parts_sales, parts_cost, sublet_sales and sublet_cost. This address is the example above:

```
https://open.wenmarpro.com/tools/gross-profit?labor_sales=48000.00&technician_cost=18000.00&parts_sales=40000.00&parts_cost=26000.00&sublet_sales=2000.00&sublet_cost=1600.00
```


## Use it

This is arithmetic, not accounting or tax advice.

- [Gross profit calculator for auto repair shops](https://open.wenmarpro.com/tools/gross-profit)