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GP Health

Evaluate your gross profit margins for labor and parts.

Labor

Parts

Labor GP%

70.0%

Parts GP%

40.0%

Overall GP%

56.7%

Why Gross Profit Health Matters

Gross profit is the lifeblood of any auto repair shop. While top-line revenue gets the attention, it's your GP margins that determine whether your shop is actually profitable — or just busy.

Industry Benchmarks

  • Labor GP: Top shops target 65–72%. Below 55% signals pricing or efficiency issues.
  • Parts GP: Healthy range is 45–55%. Matrix pricing is essential to stay competitive.
  • Overall GP: Combined target of 55–62% keeps your shop financially healthy.

What to Watch For

  • Declining labor GP: Often caused by technician pay increases without matching rate adjustments.
  • Low parts GP: Check for inconsistent markup or too many dealer-parts purchases.
  • Seasonal swings: Track monthly to spot patterns — most shops see Q1 dips.

Want GP health tracked automatically?

PULSE by DataDyne connects to your shop management system and monitors gross profit margins in real-time — no spreadsheets needed.

See PULSE in Action →