LR
Labor Rate Calculator — For US Auto or Truck Repair Shops
Calculate the hourly rate your shop must charge to be profitable. Includes benefits, overhead, billable hours and two modes (Profit Margin / Markup).
Hourly pay to technician before benefits/taxes. Example: 25–45 $/hr
22%
Taxes, insurance, workers comp, paid time off. Industry: 15–30% typical.
32%
Rent, utilities, admin, marketing, equipment. Typical: 25–50%.
20%
Profit as % of revenue. For Markup mode, this becomes markup % on loaded cost.
Realistic billable hours: ~1,650–1,900 (not 2,080). Adjust per shop.
Use to compare calculated rate vs common market rates (e.g. $120–$165).
Loaded labor cost (wage + burden)
$0.00
Required hourly rate
$0.00
Annual revenue per tech (rate × billable hrs)
$0.00
Annual profit (based on mode)
$0.00
Copy summary
Calculation steps:
- Loaded labor cost = wage × (1 + burden%).
- If Profit Margin Mode: Required hourly rate = Loaded cost ÷ (1 - overhead% - profit%).
- If Markup Mode: Required hourly rate = Loaded cost × (1 + markup%).
- Annual revenue = required hourly rate × billable hours.
- Annual profit depends on mode: in Profit Mode it's revenue × profit%; in Markup Mode it's revenue - (loaded cost × billable hrs).
Tip: Many shops underprice by using wage-only math. Use loaded cost + overhead + profit to be safe.
Made for US market · Flat UI