Shop labor rate calculator
Enter what your shop costs to run each month. The calculator works out what each billable hour costs you, and the labor rate that earns the margin you want. Nothing is sent anywhere; it runs in your browser.
Margin, not markup
Margin is the share of the rate that's profit: a 30% margin means 30 cents of every labor dollar is profit. Markup is what you add on top of cost: a 30% markup is only about a 23% margin. This calculator uses margin, so the rate is cost ÷ (1 − margin).
Not sure what to put in? The labor rate guide walks through each number with a worked example for a two-bay shop. These defaults are that example.