Free tool
Shop labor rate calculator.
Short answer: The rate you need equals your monthly costs plus target profit, divided by the hours you expect to bill in a month. Billable hours are technicians times paid hours times your overall efficiency, not every hour on the clock.
Billable hours = Technicians x Paid hours x Overall %
Rate needed = (Monthly costs + Target profit) / Billable hours
Rate needed = (Monthly costs + Target profit) / Billable hours
How to use it
- Add up a normal month of costs.
- Set the profit you want.
- Enter technicians, paid hours and your real billed-to-paid ratio from the efficiency calculator.
Questions
Should parts profit lower my labor rate?
Some shops count parts margin toward the target. This calculator covers labor only, which is the safer test.
What about after-hours work?
Set separate night, weekend and holiday rates. MetaFleet applies them by job-site time.
Is my data saved or sent anywhere?
No. The calculator runs in your browser. Nothing you type leaves this page.
Related
Labor rate calculator After-hours billing Parts markup calculator
Get a walkthrough
See it on one of your own jobs
Bring a real repair order. We will run it through MetaFleet live.