Business Calculators
The Basics You Need to Always be Profitable
This series includes 24 key numbers. If you work on getting all of them in the ranges mentioned, your shop should be solidly profitable. There is a fill-in-the-blank form where you can automatically calculate many of these numbers for your shop in our Business Calculators area available to Premium Members.
Twenty-three different forms where you enter numbers from your shop. Key management numbers are then automatically calculated, including Gross Profits, Effective Labor Rate, and Average RO.
Unlock all 24Gross Profit Dollars per Sold Hour
For this key number, we want to know how many gross profit dollars are being generated during an average sold hour over a certain period. It can also calculate the gross profit per sold hour on individual operations and estimates.
Premium Members get all 24 calculators, plus 375+ SOPs and 975+ management tips.
Worked example
Last month at Acme Auto the techs produced 275 total sold hours. Last month’s gross profit was $30,250 (to calculate this number, see Key # 9). $30,250 ÷ 275 hours = $110 So, our key number is $110 When looking at this number for a typical independent shop that is solidly profitable, this number will normally run between $115 and $145.
Definitions
Gross profit: The total profit on selling something before any expenses or other costs are deducted.
Why Auto Shop Owners Need Business Calculators
Whether you're tracking your shop's labor rate, monitoring gross profit, or measuring how your monthly sales compare to the same period last year, having access to these calculations removes the guesswork from shop management. Instead of estimating, you get clarity, which leads to better decisions.
What Makes These Calculators Different
Our calculators are specifically designed for auto repair shops and service centers. Each calculator targets a metric that directly affects your bottom line, from new-customer rate and oil-change capture rate to gross profit per sold hour and true labor rate.
These aren't vanity metrics. They're the KPIs that profitable shop owners track consistently to stay ahead of rising costs, efficiency challenges for technicians, and shifting customer demand.
Benchmark Your Shop Against Industry Standards
It's not enough to know your parts' gross profit percentage; you need to know whether it's within the range of a healthy, thriving shop. These calculators provide a benchmark, helping you identify gaps and set realistic, data-backed goals.
Ready to put these calculators to work for your shop? Join over 15,000 auto shop owners and managers in the Automotive Management Network community. Become a Premium Member to unlock full access to all of our business calculators and hundreds of additional management resources.
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