Auto Shop Pricing Tool

Auto Repair Labor Rate Calculator

Find the posted rate that covers technician wages, overhead, and your profit target — not just what competitors charge.

Technician Costs

Number of Technicians

Avg Tech Wage ($/hr)

Before payroll taxes

Payroll Burden Rate (%)

FICA + workers comp + benefits

Annual Hours per Tech

Typical: 2,080 (40 hrs × 52 wks)

Tech Efficiency / Productivity (%)

% of hours that are billable. Industry avg: 70–80%. High performers: 85%+.

Shop Overhead (Annual)

Rent / Facility ($/yr)

Equipment & Tools ($/yr)

Depreciation, leases, calibration

Insurance ($/yr)

GL, garage keepers, property

Utilities & Supplies ($/yr)

Owner Salary ($/yr)

Other Overhead ($/yr)

Marketing, software, admin, phone

Profit Target

Target Net Profit Margin (%)

Local Market Rate ($/hr)

What competitors charge

Labor Rate Analysis

Annual billable hours (all techs)—

Burdened tech cost per billable hour—

Overhead per billable hour—

Total cost per billable hour—

Profit target per hour—

Required posted rate—

vs. Market rate—

Annual revenue at required rate—

Annual net profit at required rate—

Break-even

—

Target Rate

—

Market Rate

—

See how many jobs and hours you need to hit your annual profit goal.

Profit Margin Calculator Employee Cost Calculator

Parts markup vs labor rate: Most auto repair shops generate profit from both labor and parts. Parts markup typically runs 40–60% above cost (meaning a $100 part is billed at $140–$160). A shop that sets a low labor rate to compete on price but fails to mark up parts aggressively enough often finds its effective revenue per job is far below the posted rate. Build your rate model to hit profitability from labor alone — parts markup is bonus margin, not a crutch.