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 24Total Gross Profit
For this key number, we want to know what percent of total sales was gross profit. That is, the total of all sales of all types less the cost of those sales expressed as a percent of the total sales amount.
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Worked example
Last month Acme Auto had total sales of $50,000.
The cost of those sales was $19,750. This includes cost of technician gross pay ($7,250), cost of parts ($11,000), cost of tires ($1,500) and cost of anything else that was sold.
$50,000 less $19,750 = $30,250 profit.
$30,250 ÷ $50,000 = 0.605
So, our key number is 60.5%
When looking at this number for a typical independent shop which is solidly profitable, this number will normally run between 58% and 62%.
Definitions
Total sales:
Includes sales of all parts, shop supplies, labor, sublet, and tires.
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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