🔧 Auto Repair Tools
Auto Labor Rate Calculator
Find the labor rate you need to charge to hit your income goal after all shop overhead.
Shop details
Rent, utilities, insurance, equipment
Fill in the details and click calculate.
Frequently Asked Questions
How do I set my shop's labor rate?
Total monthly costs (tech wages + burden, rent, insurance, equipment, software, admin) ÷ realistic billed hours, plus profit margin. Most US independent shops land between $100–180/hour; dealers higher.
What is technician efficiency and why does it drive the rate?
Billed flat-rate hours ÷ clocked hours. At 85% efficiency, a tech on the clock 160 hours bills 136 — your rate must recover all costs across billed hours only, not hours present.
How does my rate compare to the dealer matter?
Independents typically price 20–30% under local dealer rates while promising equivalent quality. Price too far below and customers read it as a quality signal, not a bargain.
More Free Tools for Auto Repair
Repair Job Calculator
Price any repair job with parts and labor
Parts Markup Calculator
The right markup on parts
Shop Rate Calculator
Your true hourly shop rate
Profit Calculator
Profit per repair job
Break-Even Calculator
Jobs needed to cover your overhead
Diagnostic Fee Calculator
What to charge for diagnostics