Free hourly rate calculator for car repair shops: Calculate your optimal hourly rate now!

Free hourly rate calculator for car repair shops

The right hourly rate is the foundation of every profitable auto repair shop. If it's too low, you're giving away valuable profit and won't be able to cover your costs. If it's too high, you'll scare away customers and lose out to the competition. But how do you find the sweet spot?

Many garage owners rely on their gut feeling or look to the competition for guidance. However, a sustainably successful business is based on solid figures. With our free hourly rate calculator for automotive garages, you can quickly and easily determine the minimum hourly rate you need to charge to cover all costs and achieve your desired profit.

With our free calculator, you can quickly and easily determine the net hourly rate you need to set to cover all costs and achieve your desired profit.

Your individual hourly rate calculator

1. Enter your details

What profit and salary would you like to earn for yourself after deducting all costs?

Only count employees who work directly on the vehicle (e.g., mechatronics technicians, mechanics). Office staff are not included.

What percentage of paid working time is actually billed to customers? Realistic figures often range between 70% and 85%.

What percentage markup do you typically add to the purchase price of spare parts? This profit from parts sales reduces the amount you need to generate through labor.

Total monthly costs such as rent, salaries (excluding your wages), insurance, marketing, software (e.g. CATAMA ), electricity, etc.

2. Your result (net)

Minimum revenue through work

This revenue must be generated monthly through the work performance of your employees.

Calculation…

 

Minimum hourly rate (net)

This amount must be invoiced net per productive hour.

Calculation…

Understanding and using the results

The calculated minimum hourly rate is the net amount you need to earn per billable hour. Remember to add VAT to this amount to arrive at your gross rate for the client.

Important: This is the absolute minimum to achieve your goals. A buffer for unforeseen expenses or investments is always advisable.

The next step: From calculation to optimization

A computer is an excellent tool for planning. In the daily workshop routine, however, it's crucial to actually achieve the calculated goals. The biggest challenge is often capacity utilization : Unproductive time spent waiting for parts, inefficient scheduling, or a lack of information dramatically reduces your profit.

This is precisely where modern workshop software like CATAMA in. It helps you with:

  • Maximize your employees' workload with a digital planning board.
  • To accurately record working hours and assign them directly.
  • To keep track of all costs and revenues in real time.
  • To create professional invoices with correctly itemized labor and parts values.

Stop estimating and start controlling. Discover how CATAMA can make your workshop more profitable.

Discover Catama now & request a demo

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