Auto Repair Pro Forma Template

Once the Assumptions sheet is set, review the Revenue Projections and COGS & Labor sheets to check that the outputs look realistic. Confirm that your parts gross margin is landing in the 45–55% range — if it's lower, you may be pricing parts too close to cost or your supplier pricing is softer than average. Check that your effective labor rate (actual revenue divided by total technician hours) is close to your posted rate — a big gap means low technician efficiency or excessive comebacks. If you're projecting a new shop or acquisition, fill in the startup costs section of the Cash Flow sheet: deposit, equipment, initial parts inventory (typically 2–3 weeks of parts COGS), and working capital reserve of at least 3 months of operating expenses.

The parts-to-labor ratio is the other lever most shop operators underappreciate. For general repair shops, a healthy parts-to-labor ratio runs 0.9:1 to 1.2:1 — meaning for every dollar of labor revenue, you're generating $0.90–$1.20 in parts revenue. Parts margins are typically higher than labor margins on a gross basis because the parts markup (cost to retail) runs 50–100% depending on your supplier relationships and whether you're using OEM or aftermarket. Shops that let service advisors discount parts heavily to win jobs are often giving away their most profitable revenue stream without realizing it. The template tracks parts margin percentage separately so you can see exactly what your effective markup is and how it compares to industry benchmarks.