Auto repair labor rate calculator
Type in what your shop costs to run and how many hours you bill. The calculator shows the hourly labor rate you need to break even, and the rate to charge if you want to keep a share as profit.
It is free. You do not sign up, and nothing you type leaves your browser.
Your shop numbers
Example numbers. Change them to yours.
- Monthly costs
- -
- Monthly billed hours
- -
How we figure it
- Tech pay each month is the number of techs, times pay per hour, times paid hours a week, times 52 weeks, divided by 12 months (about 4.33 weeks a month). Then we add your payroll taxes and benefits.
- Monthly costs are that tech pay plus your other shop costs.
- Monthly billed hours are the number of techs, times hours billed per tech each week, times 52, divided by 12.
- The break-even rate is monthly costs divided by monthly billed hours.
- The target rate is the break-even rate divided by one minus your target profit. At 20% profit, that is the break-even rate divided by 0.8.
- We round both rates up to the next whole dollar.
With the example numbers, monthly costs are $28,744 and monthly billed hours are 416. That gives a $70 break-even rate and an $87 target rate.
This calculator leaves out parts profit. If parts profit covers some of your costs, your labor rate can be lower.
Questions about the calculator
What are billed hours?
Billed hours are the hours you charge customers for. They are not the hours a tech is at work. A tech who is at the shop 40 hours may bill 32. To find your number, add up the labor hours on last month's repair orders. Divide by your techs, then by about 4.3 weeks.
What target profit should I type?
That is your call. Target profit is the share of each labor dollar you want to keep after all your costs. Type 0 to see only the break-even rate. Then try a few numbers and watch how the target rate moves.
Why does the rate round up?
The calculator rounds up to the next whole dollar. That way the rate you set is never lower than the math says. A rate rounded down could land under your costs.
Does this save my numbers?
No. The math runs in your browser. Nothing you type is sent anywhere or stored, and you do not sign up.
Once you have your rate
Put that rate into myShop and every quote uses it, along with your parts markup and tax settings. You still check each line before it goes out. Join the early access list. The first 50 shops keep $65 a month for life, with no contract and no credit card.
Get early access