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Key #3 Expenses

Category: Costs

For this key number, we want to know what percent of total sales is spent on expenses.


Last month Acme Auto had total sales of $50,000.
Total spending for expenses was $14,000.
$14,000 ÷ $50,000 = 0.28

So, our key number is 28%

When looking at this number for a typical independent shop which is solidly profitable, this number will normally run between 24% and 30%.


All spending of all types except payroll, parts, sublet and tires.

Total sales:
Includes sales of all parts, shop supplies, labor, sublet, and tires.

Expenses as Percentage of Sales Calculator