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 24Tire Gross Profit
For this key number, we want to know what percent of tire sales was profit. That is, the total sale price of tires sold minus the cost of those tires expressed as a percent of the total tire sales price.
Premium Members get all 24 calculators, plus 375+ SOPs and 975+ management tips.
Worked example
Last month Acme Auto had total tire sales of $2,000.
The cost of those tires was $1,500.
$2,000 minus $1,500 = $500 profit.
$500 ÷ $2,000 = 0.25
So, our key number is 25%
When looking at this number for a typical independent shop which is solidly profitable, this number will normally run between 20% and 26%
Definitions
Total tire sales:
Includes only the tires themselves. Does not include labor to install the tires. Does not include other parts sold with the tires – even if they are “tire related” parts.
Gross profit:
The total profit on the sale of something before any expenses or other costs of any kind 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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