🔧 Auto Repair Tools
Shop Labor Rate Calculator
Calculate the labor rate your shop needs to charge to cover costs and make a profit.
Shop details
Tech wages, rent, utilities, insurance
Fill in the details and click calculate.
Frequently Asked Questions
What does one hour of shop time actually cost me?
Loaded tech wage + rent, utilities, insurance, equipment depreciation, software, and admin spread across billed hours. Many owners discover their true cost is $70–100/hour before any profit.
How many billable hours can a shop realistically sell?
Per tech, expect 70–90% of clocked hours to bill in a well-run shop. Bays, techs, and hours open set your ceiling — the calculator shows how utilization moves your required rate.
When should I raise my shop rate?
At least annually, and immediately after wage increases — a $3/hour tech raise across a 4-tech shop needs roughly a $4–5/hour rate increase to hold margin.
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