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Auto repair shop · 13 min

How a repair shop makes money

A repair shop sells two things: its technicians' hours and the parts that go into your car. The catch: the bays cost the same whether a car is in them or not. A few tickets on running your own shop.

SERVICE
Your business

Pick the business you'll run

Each lesson uses your pick for its numbers. You can change it any time.

What kind of shop

General repair shop

The average US general repair shop with staff sold $852,000census.gov ·2022 in 2022.

Oil change and tire shop

US oil change shops with staff sold $1Mcensus.gov ·2022 each on average in 2022.

Mobile mechanic

One-person repair businesses averaged $60,000census.gov ·2024 in sales in 2024.

Where
Pick a business to start.

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Sources and every number (6)

Sources

  • Statistics of U.S. Businesses 2022: firms, establishments, employment, annual payroll and receipts by industry and enterprise receipts size (NAICS 8111, Automotive Repair and Maintenance; 811111, General Automotive Repair; 811191, Automotive Oil Change and Lubrication Shops; 811121, Automotive Body, Paint, and Interior Repair and Maintenance; 441320, Tire Dealers). Released April 10, 2025 · U.S. Census Bureau, 2022
  • Monro, Inc. Form 10-K for the fiscal year ended March 29, 2025 · Monro, Inc. (U.S. Securities and Exchange Commission filing), 2025
  • Nonemployer Statistics 2024, U.S. file nonemp24us: businesses with no paid employees and their receipts by industry (NAICS 8111, Automotive Repair and Maintenance; 81111, Automotive Mechanical and Electrical Repair and Maintenance) · U.S. Census Bureau, 2024
  • Occupational Outlook Handbook: Automotive Service Technicians and Mechanics (pay May 2025, jobs 2025, outlook 2025 to 2035) · U.S. Bureau of Labor Statistics, 2025
  • Publication 15 (2026), (Circular E), Employer's Tax Guide · Internal Revenue Service, 2026
  • Apply for a license: Automotive Repair Dealer registration and other licenses, who needs one and the fees · California Bureau of Automotive Repair, 2026

Every number

  • $852,000census.gov ·2022 · Worked out from the Census: what US general automotive repair shops with employees sold in 2022, divided by how many there were, rounded to the thousand. Sales, not profit.
  • 4.6 peoplecensus.gov ·2022 · Worked out from the Census: employees of US general automotive repair shops divided by the shops, 2022.
  • 77.2%census.gov ·2022 · Worked out from the Census: the share of US general automotive repair companies with employees that sold under one million dollars in 2022 (companies, which can own more than one shop).
  • $1Mcensus.gov ·2022 · Worked out from the Census: what US oil change and lubrication shops with employees sold in 2022, divided by how many there were, rounded to the ten thousand. Sales, not profit.
  • 8.5 peoplecensus.gov ·2022 · Worked out from the Census: employees of US oil change and lubrication shops divided by the shops, 2022.
  • $949,000sec.gov ·2025 · Worked out and rough: Monro's sales in its fiscal year 2025 divided by the stores it ran at the end of that year (some closed or opened during it).
  • 1,260 storessec.gov ·2025 · Tire and car repair stores Monro ran at the end of its fiscal year 2025, in March 2025.
  • $60,000census.gov ·2024 · Worked out from the Census: what US car mechanical and electrical repair businesses with no employees took in during 2024, divided by how many there were, rounded to the thousand. Sales, not profit; many work part-time.
  • 225,471census.gov ·2024 · US car mechanical and electrical repair businesses with no employees, 2024.
  • 15%bls.gov ·2025 · Share of automotive service technicians' and mechanics' jobs held by self-employed workers, 2025.
  • $24.34/hourbls.gov ·2025 · Median hourly pay of automotive service technicians and mechanics, May 2025.
  • $21.97/hourbls.gov ·2025 · Worked out from the BLS: the median yearly pay of automotive service technicians and mechanics at automotive parts, accessories and tire retailers, May 2025, divided by the hours in a full-time year (forty hours a week for fifty-two weeks).
  • 2 hoursexample (example number: Simplified example: the book hours for replacing a car's front brake pads and rotors.) · Simplified example: the book hours for replacing a car's front brake pads and rotors.
  • $140/hourexample (example number: Simplified example: a general repair shop's labor rate. Rates vary a lot by place and shop, and no government source publishes them.) · Simplified example: a general repair shop's labor rate. Rates vary a lot by place and shop, and no government source publishes them.
  • $280example (example number: Simplified example: the labor charge: two book hours at our example rate.) · Simplified example: the labor charge: two book hours at our example rate.
  • $48.68example (example number: Simplified example: the technician's pay for two hours at the BLS median.) · Simplified example: the technician's pay for two hours at the BLS median.
  • $231.32example (example number: Simplified example: the labor charge less the technician's pay.) · Simplified example: the labor charge less the technician's pay.
  • $160example (example number: Simplified example: what the pads and rotors cost the shop.) · Simplified example: what the pads and rotors cost the shop.
  • 60%example (example number: Simplified example: the shop's markup on these parts.) · Simplified example: the shop's markup on these parts.
  • $96example (example number: Simplified example: the markup on the parts.) · Simplified example: the markup on the parts.
  • $256example (example number: Simplified example: the parts as sold to the customer.) · Simplified example: the parts as sold to the customer.
  • $536example (example number: Simplified example: the whole bill before sales tax.) · Simplified example: the whole bill before sales tax.
  • $120/hourexample (example number: Simplified example: an oil change and tire shop's labor rate for jobs priced by the hour. Rates vary a lot, and many quick jobs have a set price instead.) · Simplified example: an oil change and tire shop's labor rate for jobs priced by the hour. Rates vary a lot, and many quick jobs have a set price instead.
  • 1 hourexample (example number: Simplified example: the book time for an oil change and mounting and balancing two tires.) · Simplified example: the book time for an oil change and mounting and balancing two tires.
  • $120example (example number: Simplified example: the labor charge: one book hour at our example rate.) · Simplified example: the labor charge: one book hour at our example rate.
  • $21.97example (example number: Simplified example: the technician's pay for one hour at the BLS median for tire and parts retailers, worked out per hour.) · Simplified example: the technician's pay for one hour at the BLS median for tire and parts retailers, worked out per hour.
  • $98.03example (example number: Simplified example: the labor charge less the technician's pay.) · Simplified example: the labor charge less the technician's pay.
  • $265example (example number: Simplified example: what two tires, the oil and the filter cost the shop.) · Simplified example: what two tires, the oil and the filter cost the shop.
  • $100example (example number: Simplified example: the markup on the tires, oil and filter.) · Simplified example: the markup on the tires, oil and filter.
  • $365example (example number: Simplified example: the tires, oil and filter as sold to the customer.) · Simplified example: the tires, oil and filter as sold to the customer.
  • $485example (example number: Simplified example: the whole bill before sales tax.) · Simplified example: the whole bill before sales tax.
  • $110/hourexample (example number: Simplified example: a mobile mechanic's labor rate. Rates vary a lot by place.) · Simplified example: a mobile mechanic's labor rate. Rates vary a lot by place.
  • $220example (example number: Simplified example: the labor charge: two book hours at our example rate.) · Simplified example: the labor charge: two book hours at our example rate.
  • $171.32example (example number: Simplified example: the labor charge less what a technician would earn for the time.) · Simplified example: the labor charge less what a technician would earn for the time.
  • 30%example (example number: Simplified example: a mobile mechanic's markup on these parts.) · Simplified example: a mobile mechanic's markup on these parts.
  • $48example (example number: Simplified example: the markup on the parts.) · Simplified example: the markup on the parts.
  • $208example (example number: Simplified example: the parts as sold to the customer.) · Simplified example: the parts as sold to the customer.
  • $428example (example number: Simplified example: the whole bill before sales tax.) · Simplified example: the whole bill before sales tax.
  • 2 techniciansexample (example number: Simplified example: technicians on the clock in a small shop.) · Simplified example: technicians on the clock in a small shop.
  • 9 hoursexample (example number: Simplified example: the hours each technician is paid that day.) · Simplified example: the hours each technician is paid that day.
  • 18 hoursexample (example number: Simplified example: the paid hours: two technicians for nine hours each.) · Simplified example: the paid hours: two technicians for nine hours each.
  • 13.5 hoursexample (example number: Simplified example: the book hours on the day's bills.) · Simplified example: the book hours on the day's bills.
  • $1,890example (example number: Simplified example: the day's labor sales: the book hours times the labor rate.) · Simplified example: the day's labor sales: the book hours times the labor rate.
  • 4.5 hoursexample (example number: Simplified example: paid hours that ended up on no bill.) · Simplified example: paid hours that ended up on no bill.
  • 30 carsexample (example number: Simplified example: cars served in a day at a busy oil change and tire shop.) · Simplified example: cars served in a day at a busy oil change and tire shop.
  • $95example (example number: Simplified example: what the average car spends at an oil change and tire shop.) · Simplified example: what the average car spends at an oil change and tire shop.
  • $2,850example (example number: Simplified example: the day's sales: cars times the average sale.) · Simplified example: the day's sales: cars times the average sale.
  • 9 hoursexample (example number: Simplified example: a mobile mechanic's working day, driving included.) · Simplified example: a mobile mechanic's working day, driving included.
  • 5.5 hoursexample (example number: Simplified example: the book hours on the day's bills.) · Simplified example: the book hours on the day's bills.
  • $605example (example number: Simplified example: the day's labor sales: the book hours times the labor rate.) · Simplified example: the day's labor sales: the book hours times the labor rate.
  • 28.4%census.gov ·2022 · Worked out from the Census: what US body, paint and interior repair shops with employees paid in wages, as a share of their sales, 2022.
  • 26.8%census.gov ·2022 · Worked out from the Census: what US general automotive repair shops with employees paid in wages, as a share of their sales, 2022. Wages only, before payroll taxes and benefits.
  • 26.3%census.gov ·2022 · Worked out from the Census: what US oil change and lubrication shops with employees paid in wages, as a share of their sales, 2022.
  • 15.4%census.gov ·2022 · Worked out from the Census: what US tire dealers paid in wages, as a share of their sales, 2022.
  • $96example (example number: Simplified example: the brake pads as sold.) · Simplified example: the brake pads as sold.
  • $136example (example number: Simplified example: the rotors as sold.) · Simplified example: the rotors as sold.
  • $24example (example number: Simplified example: small parts on one line.) · Simplified example: small parts on one line.
  • $300example (example number: Simplified example: two tires as sold.) · Simplified example: two tires as sold.
  • $45example (example number: Simplified example: the oil and filter as sold.) · Simplified example: the oil and filter as sold.
  • $20example (example number: Simplified example: small parts on one line.) · Simplified example: small parts on one line.
  • $80example (example number: Simplified example: the brake pads as sold.) · Simplified example: the brake pads as sold.
  • $108example (example number: Simplified example: the rotors as sold.) · Simplified example: the rotors as sold.
  • $20example (example number: Simplified example: small parts on one line.) · Simplified example: small parts on one line.
  • 7.65%irs.gov ·2026 · Worked out from the IRS rates: the employer's Social Security tax plus its Medicare tax on an employee's pay, 2026.
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