Labor gross profit shows what is left from labor sales after paying for technician labor. What goes into labor cost (wages only, or wages plus taxes and benefits) varies, so pick one rule.
Labor Gross Profit = Labor Sales − Labor Cost
Labor GP % = Labor Gross Profit ÷ Labor Sales × 100
EXAMPLE NUMBERS ONLY – not industry benchmarks.
Example numbers: $84,000 labor sales, $25,200 tech labor cost. Gross profit $58,800. GP % = 58,800 ÷ 84,000 = 70%.
Yes, labor gross margin percentage is another name for it.
Yes. Markup divides profit by cost; GP % divides it by sales.
Yes. Include all tech pay tied to the labor sold.
The Auto Service KPI Template Pack calculates this and other service KPIs. It comes as an Excel (.xlsx) workbook that also opens in Google Sheets (import steps included). The comeback log and per-tech scorecard are in the Pro version.
Standard – $39 (Payhip)Standard on EtsyPro – $129 (Payhip)Pro on EtsyEducational only. KPI definitions vary by shop and DMS.