RepairSlip
Free calculator

Parts markup calculator

Turn a part's cost into a selling price by markup or by margin, and build a parts pricing matrix so cheap parts and expensive parts are each priced sensibly.

Markup is profit as a percent of cost.

Sell it for
$67.20
Profit per part
$25.20
Markup
60.0%
Gross margin
37.5%

Parts pricing matrix

Most shops don't use one markup for everything. A $3 clip can carry a big multiplier; a $600 transmission part can't. Edit the tiers to match your shop, then test any cost.

Cost up toMultiplierMarkupMargin
$×200%67%
$×150%60%
$×100%50%
$×75%43%
$×60%38%
$×45%31%
and above×35%26%
Multiplier ×2.0
$77.00

Markup vs. margin, side by side

MultiplierMarkupMargin
×1.2525%20%
×1.550%33%
×1.6767%40%
×2100%50%
×2.5150%60%
×3200%67%

The most common mistake is pricing “50% markup” and thinking you made 50% margin. You made 33%. On a year of parts sales, that gap is real money.

Setting up a matrix that customers won't notice

Parts profit helps pay your overhead, which lowers the labor rate you need. Run both numbers through the labor rate calculator.

Questions

What's the difference between markup and margin?+

Markup is profit divided by cost; margin is profit divided by price. A part that costs $50 and sells for $100 has a 100% markup and a 50% margin.

What is a parts matrix?+

A table of multipliers by cost range. Low-cost parts get a higher multiplier because the dollars are small; expensive parts get a lower one so the price stays competitive.

What gross margin should a repair shop aim for on parts?+

Many shop coaches point to a blended parts margin somewhere around 40–50%, but your market and your parts mix decide what's realistic. Track it monthly rather than guessing.

Doing this every day?

Enter your cost once — see the price and profit on every ticket.

RepairSlip keeps every estimate, inspection and invoice in one place, and texts the customer a link to approve. $19 a month for the whole shop.

Try RepairSlip free

More free tools for shops