Automotive services
Auto repair labor and parts margin
Separate billed labor, technician cost and parts contribution for an automotive repair job.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
sale = billed hours × shop rate + parts sale; entered cost = technician person-hours × loaded cost + parts cost + other
Billed guide hours and actual technician hours are separate. Supply the correct times; no proprietary labor guide or repair procedure is supplied. Include shop overhead in other cost or loaded cost once. Shop fees, warranties and tax are not inferred. Use your own records for the same scope and period. Example figures are illustrative, not industry benchmarks. Results exclude income taxes and any cost you have not entered. Check the result before pricing work or committing resources.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Labor hours billed to customer (billed hours): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- Customer labor rate per billed hour (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Actual technician person-hours (person-hours): Use the matching measured quantity, time log, schedule or clearly stated estimate. Zero means intentionally none; an unknown amount is not zero.
- Loaded technician cost per person-hour (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Parts sale amount (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Parts purchase cost (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Other job cost not already included (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Job contribution after entered costs is $240.00 for the illustrative inputs below.
Example inputs
- Labor hours billed to customer: 3.00 billed hours
- Customer labor rate per billed hour: $120.00
- Actual technician person-hours: 4.00 person-hours
- Loaded technician cost per person-hour: $40.00
- Parts sale amount: $250.00
- Parts purchase cost: $180.00
- Other job cost not already included: $30.00
- Job contribution after entered costs
- $240.00
- Customer sale before sales tax
- $610.00
- Entered job costs
- $370.00
- Contribution margin
- 39.34 %
- Labor contribution
- $200.00
- Parts gross profit
- $70.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Separate billed labor, technician cost and parts contribution for an automotive repair job. Inputs come from your own records and stated assumptions; no rates or legal limits are looked up.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.