Auto Services · Calculator
Auto Repair Labor Rate Calculator
Calculate the labor rate needed to cover technician wages, payroll burden, overhead, and a target labor gross margin.
How to use this Auto Repair Labor Rate Calculator
Calculate the labor rate needed to cover technician wages, payroll burden, overhead, and a target labor gross margin. Enter your numbers above and Okomit calculates the result instantly.
Auto Repair Labor Rate Calculator formula
Loaded Labor Cost = Wage × (1 + Payroll Burden %) + Overhead per Billable Hour; Suggested Rate = Loaded Cost ÷ (1 − Target Margin %)
Example
A $32 wage with 18% burden, $28 overhead per billed hour, and a 55% target margin produces a suggested labor rate of about $145.39 per hour.
How to use the result
Use the result as a planning baseline. Local market conditions, technician mix, discounts, warranty work, nonbillable time, and shop strategy can change the practical posted rate.
Frequently asked questions
Is this calculator free?
Yes. This Okomit calculator is available as a free tool.
Does Okomit save the numbers I enter?
Guest calculations remain in the browser unless you choose a feature that explicitly saves work. Logged-in Okomit features may support saved scenarios where available.
Can I use this for business planning?
Yes, as a planning aid. Review important business, tax, legal, lending, or accounting decisions with the appropriate professional when needed.