Industry Benchmarks

Auto Repair

Auto repair shops earn revenue from both parts markup (50-100% typical) and labor ($80-150/hr billed vs. $20-35/hr tech pay). Bay utilization and technician productivity are the key profitability levers.

Key Benchmarks for Auto Repair

Net Profit Margin

10–20%

After all expenses, taxes, and overhead

Gross Margin

45–55%

Revenue minus cost of goods sold

Labor Cost

~25% of revenue

Total labor as a share of top-line revenue

Overhead

~20% of revenue

Rent, utilities, insurance, admin costs

Break-Even Timeline

~18 months

Average time for a new business to break even

Cost Split

45% fixed / 55% variable

Typical fixed vs variable cost ratio

Recommended Calculators for Auto Repair

Break-Even Calculator

Find exactly how many units or how much revenue you need to cover all costs.

Markup & Margin Calculator

Understand the difference between markup and margin to set the right price.

Cash Flow Forecast

Project your cash position over 12 months with growth and seasonal inputs.

Employee True Cost

See the real cost of an employee beyond base salary – taxes, benefits, overhead.

What Auto Repair Business Owners Should Know

Margins matter more than revenue. A auto repair business with 20% net margins on $500K revenue is healthier than one with 10% margins on $1M. Use the Markup & Margin calculator to find your sweet spot.

Know your break-even number. Most auto repair businesses take ~18 months to break even. The Break-Even calculator shows exactly how many sales you need.

Labor is your biggest lever. At ~25% of revenue, labor costs in auto repair are significant. Before hiring, run the Can I Afford to Hire? calculator.