Parts markup calculator
Markup is profit as a percent of cost.
- 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 to | Multiplier | Markup | Margin |
|---|---|---|---|
| $ | × | 200% | 67% |
| $ | × | 150% | 60% |
| $ | × | 100% | 50% |
| $ | × | 75% | 43% |
| $ | × | 60% | 38% |
| $ | × | 45% | 31% |
| and above | × | 35% | 26% |
Markup vs. margin, side by side
| Multiplier | Markup | Margin |
|---|---|---|
| ×1.25 | 25% | 20% |
| ×1.5 | 50% | 33% |
| ×1.67 | 67% | 40% |
| ×2 | 100% | 50% |
| ×2.5 | 150% | 60% |
| ×3 | 200% | 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
- Keep the multiplier high on small parts — clips, bulbs, fittings — where a few dollars doesn't matter.
- Bring it down on big-ticket parts customers might price-check online.
- Review it when supplier prices change, and look at your blended margin each month.
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.
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.