Free Hourly Rate Calculator for Automotive Workshops
The right hourly rate is the foundation of every profitable repair shop. Set it too low and you give away valuable profit and cannot cover your costs. Set it too high and you put customers off and lose out to the competition. But how do you find the happy medium?
Many workshop owners rely on gut feeling or take their lead from the competition. A sustainably successful business, however, is built on solid figures. With our free hourly rate calculator for automotive workshops you can work out quickly and easily the minimum hourly rate you need to charge in order to cover all your costs and achieve the profit you want.
With our free calculator you can quickly and easily determine the minimum net hourly rate you need to charge in order to cover all your costs and achieve the profit you want.
Your individual hourly rate calculator
1. Enter your figures
2. Your result (net)
Minimum revenue from labour
This is the revenue your staff have to generate each month through the work they do.
Minimum hourly rate (net)
This is the net amount you have to charge for every productive hour.
Understanding and using the results
The calculated minimum hourly rate is the net amount you have to take per chargeable hour. Remember to add statutory VAT on top of it to arrive at the gross rate you charge the customer.
Important: this is the absolute lower limit for meeting your targets. A buffer for unforeseen expenses or investment is always advisable.
The next step: from calculation to optimisation
A calculator is an excellent planning tool. In day-to-day workshop life, however, what counts is actually hitting the targets you have calculated. The biggest challenge is often capacity utilisation: unproductive time spent waiting for parts, inefficient scheduling or missing information will cut your profit dramatically.
This is exactly where a modern workshop software such as CATAMA comes in. It helps you to:
- Maximise your staff’s capacity utilisation with a digital planning board.
- Record working times precisely and assign them directly.
- Keep an overview of all costs and revenue in real time.
- Produce professional invoices with labour and parts values shown correctly.
Stop estimating and start steering. Discover how CATAMA can make your workshop more profitable.
