The Labor Cost Calculator for Auto Repair Shops
Every Estimate You Build Without These Numbers Is a Guess
Most shops set labor rates based on what techs earn. That number leaves out taxes, insurance, benefits, and what productivity actually does to your cost per hour. This tool gives you the real number for each tech, so every estimate starts from something solid.
What You'll Know In 5 Minutes
Three numbers that change how you price every job.
True cost per hour, per tech
Not the wage on the paycheck. The real number, including payroll taxes, insurance, and benefits, spread across the hours each tech actually produces.
Labor gross profit by technician
See exactly how much labor margin each tech generates at your current door rate. Flag who's above target, who's borderline, and who needs attention.
The numbers for your SMS
Enter each tech's loaded cost into your shop management system and your estimates start reflecting what labor truly costs you, not what you wish it did.
How It Works
Three steps. Run it in minutes.
Add your techs
Enter each technician's name, hourly wage or flat-rate pay, and their hours booked over the last 3 months. The tool calculates their average cost per hour from there.
Enter loaded costs
Add payroll taxes, health insurance, and any other benefits you provide. If you don't have the exact figures, use the estimate option to get a close approximation.
See your results
Your loaded cost per hour and labor gross profit percentage for each tech, color-coded against your door rate. Enter the numbers into your shop management system.
Your Results
A clear picture of what each tech costs you.
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Loaded cost per hour per tech, calculated from wages, taxes, insurance, and benefits.
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Labor gross profit per tech, color-coded so you can see at a glance who's on target and who needs attention.
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Your shop average, so you know where your door rate stands across the team.
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Printable results you can share with your service manager or use to update labor costs in your shop management system.
COMMON QUESTIONS
Good questions.
Straight answers.
Everything you need to know before you run your numbers.
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What is loaded labor cost?
Loaded labor cost is what a technician actually costs your shop per hour, not just their wage. It includes payroll taxes, health insurance, and any other benefits you provide. Most shops price off the wage alone, which understates the real cost.
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Why does loaded cost per hour vary between techs?
Productivity is part of the calculation. A tech who clocks 40 hours but only produces 30 billable hours spreads the same total cost over fewer hours, which raises their loaded cost per hour. Two techs earning the same wage can have very different loaded costs depending on how they produce.
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Does this work for flat-rate techs?
Yes. You enter flat-rate earnings and billed hours the same way you would for hourly techs. The tool calculates from whatever wage and hour figures you provide.
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What's a healthy labor gross profit percentage?
Most well-run shops target 58% or better. The tool shows you where each tech lands and flags results that need attention.
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What should I do with my loaded cost numbers?
Enter them into your shop management system per technician. When your service advisors build estimates, they'll be working from true labor costs rather than wages, which means your labor gross profit will reflect what's actually happening in the shop.
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Is this tool free?
Yes. Come back to calculate as often as you want — any time a wage changes, you hire someone new, or you want to check whether your door rate is still covering your costs.
STOP GUESSING. START KNOWING.
Run your numbers.
Know what each tech costs you.
Come back to calculate again anytime.