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Effective Labor Rate (ELR) Calculator

Your door rate says $150/hr — but what are you actually collecting?

Effective Labor Rate

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ELR vs Door Rate

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Collection Efficiency

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Lost to Discounts

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Why Effective Labor Rate Is the Truth Teller

ELR is what you actually collect per billed hour — not what your door rate says. Discounts, comebacks, warranty work, internal jobs, and rounding down hours all erode your real rate.

ELR Benchmarks

  • Below 85% of door rate: Significant leakage. Look at discounting habits, warranty costs, and unbilled time.
  • 85–95% of door rate: Typical range. Room for improvement in discount discipline.
  • 95–100% of door rate: Excellent — minimal discounting, low comebacks, tight billing.

Common ELR Killers

  • Coupons & discounts: Track every dollar discounted — it adds up fast.
  • Comebacks: Free rework at full tech cost. Reduce with better QC processes.
  • Internal / shop work: Charging below-rate for fleet or employee cars.
  • Rounding down hours: Billing 0.5 when the job book says 0.7.

Benchmarks referenced from leading automotive coaching groups including ATI, Elite Worldwide, Transformers Institute, Shop Fix Academy, 180BIZ, DRIVE, and the Institute for Automotive Business Excellence.

Track ELR automatically

PULSE calculates your effective labor rate in real-time from your shop management system — no spreadsheets.

See PULSE in Action →