Service Labour & Parts Margin Calculator

Labour is the hourly rate times estimated hours for a job. A healthy hourly rate starts from the mechanic's wage divided by productive monthly hours — not total opening hours, since waiting time is still paid. Above that cost, add margin to cover overhead and leave profit. This computes the labour charge for comparison with nearby workshops.

It varies with part type, turnover, and competition. Fast-moving parts available everywhere usually carry thin margins because prices are easily compared; hard-to-find parts can carry more. What matters isn't a target number but covering storage cost, dead-stock risk, and capital tied up. And markup isn't margin — the calculator offers both.

Markup is on cost, margin on selling price. A Rp60,000 part at 30% markup sells for Rp78,000, profit Rp18,000 — but Rp18,000 / Rp78,000 is 23%, not 30%. For a true 30% margin the price is Rp60,000 / 0.7 ≈ Rp85,700. Small per part, it stacks across hundreds a month. The calculator shows both.

Depends on your scheme. If salaried monthly, the wage is a fixed cost, not deducted per job — that's the assumption here, so workshop take is labour plus gross parts margin. If paid per-job commission, include it as a variable cost. To check whether the take covers all wages and fixed costs, use the Workshop Capital & BEP calculator.

Usually because labour feels abstract next to tangible parts. A customer can hold a brake pad, not the skill separating a right fit from a wrong one. The fix isn't cutting rates but making value visible: clear job breakdowns, transparent estimates before work, and a service warranty. A tidy written estimate — which a system can help produce — often convinces more than a lower price.