Industry Benchmarks · Top 10
The Best KPIs for Auto Repair Shops in 2027
Direct answer
Average repair order is the best KPI for auto repair shops in 2027, followed by car count and effective labor rate. Tekmetric, a shop software vendor, reports a national average ARO of $704.25 and a monthly car count of 118 across more than 10,000 shops through June 2026. Where no independent benchmark exists, as with comeback rate, this page says so.
At a glance
| # | Pick | Definition | Best for |
|---|---|---|---|
| 1 | Average Repair Order (Auto Repair Shop) | The average total cost of all repair orders: the sum of monthly repair order totals divided by the number of orders (Ratchet+Wrench, AutoZone sponsored content) | Owners who want one number for how much each car brings in |
| 2 | Car Count (Auto Repair Shop) | The number of vehicles serviced in a given period, split into new and returning customers if you choose (Tekmetric) | Shops tracking whether marketing and retention are filling the bays |
| 3 | Effective Labor Rate (Auto Repair Shop) | Total labor sales in dollars divided by total labor hours billed (Ratchet+Wrench, AutoZone sponsored content) | Shops that post one hourly rate but discount, flat-rate or package labor |
| 4 | Gross Profit on Labor (Auto Repair Shop) | Job revenue minus the labor cost of completing it, excluding overhead (Ratchet+Wrench, AutoZone sponsored content) | Owners who pay technicians flat rate or hourly and want to see what labor leaves behind |
| 5 | Gross Profit on Parts (Auto Repair Shop) | Job revenue minus the parts cost of completing it, excluding overhead (Ratchet+Wrench, AutoZone sponsored content) | Shops whose parts matrix has not been checked in a while |
| 6 | Technician Efficiency (Auto Repair Shop) | Flat rate hours produced divided by actual hours worked (Ratchet+Wrench, AutoZone sponsored content) | Shops that bill flat-rate hours and want to see who beats book time |
| 7 | Technician Productivity (Auto Repair Shop) | Hours worked divided by hours available; it compares the time a technician is available with the time spent on paid repair orders (Ratchet+Wrench, AutoZone sponsored content) | Owners who suspect bays sit idle between jobs |
| 8 | Closing Ratio (Auto Repair Shop) | The percentage of items sold on any given visit, regardless of cost, scope or scale (Ratchet+Wrench, AutoZone sponsored content) | Shops that inspect every car and want to know how many recommendations get approved |
| 9 | Average Hours per Repair Order (Auto Repair Shop) | The average technician time per repair order: hours worked in a week divided by repair orders in a week (Ratchet+Wrench, AutoZone sponsored content) | Shops checking whether inspections are finding enough work per visit |
| 10 | Comeback Rate (Auto Repair Shop) | A return visit for the same fault, same system or same component within a defined window, typically 30 days, where the original repair did not hold (OxMaint) | Shops that want a quality check beside the money KPIs |
Pick by what you want
Best overall
Average Repair Order (Auto Repair Shop)
Best for volume
Car Count (Auto Repair Shop)
Best for pricing
Effective Labor Rate (Auto Repair Shop)
Best for margins
Gross Profit on Labor (Auto Repair Shop)
Best for technicians
Technician Efficiency (Auto Repair Shop)
Best for quality
Comeback Rate (Auto Repair Shop)
The ranking
1
Average Repair Order (Auto Repair Shop)
Photo: nakhon100 / CC BY 2.0 via Wikimedia Commons
Answrs VerdictThe headline KPI.
Definition: The average total cost of all repair orders: the sum of monthly repair order totals divided by the number of orders (Ratchet+Wrench, AutoZone sponsored content)Tekmetric Shop Index, vendor data: National average ARO of $704.25, top 25% at $879.38 and median of $649.88, from more than 10,000 North American shops through June 2026Ratchet+Wrench benchmark, 2023: Industry average of $200-$399 and optimal benchmark of $400+; shops over $1 million in annual revenue average $400-$599ATI via MOTOR, 2022: Garage auto repair $350 to $650, Euro shops $1,000 to $1,400 and diesel shops $1,000 to $1,800
ARO is the sum of monthly repair order totals divided by the number of orders. Tekmetric reports a national average of $704.25 and a median of $649.88, while Ratchet+Wrench’s 2023 sponsored benchmark was an optimal $400+.
Go ifOwners who want one number for how much each car brings in
Skip ifYou compare shops of different types; a Euro or diesel shop runs far higher than a general garage
Why #1 over #2: It turns each visit into dollars, so it leads before the traffic and rate numbers behind it.
2
Car Count (Auto Repair Shop)
Photo: Mouleesha / CC BY-SA 3.0 via Wikimedia Commons
Answrs VerdictThe volume KPI.
Definition: The number of vehicles serviced in a given period, split into new and returning customers if you choose (Tekmetric)Tekmetric Shop Index, vendor data: Monthly car count of 118 for the national average, 180 for the top 25% and 97 for the median shop, through June 2026MOTOR, 2022: Defined as the repair orders a shop completes and bills per day, week, month and year; the article says every shop has its own numberKaizen CPAs, 2025: Read car count together with ARO to confirm that volume is profitable
Car count is the number of vehicles serviced in a period. Tekmetric reports 118 a month for the national average, 180 for the top 25% and 97 for the median shop through June 2026.
Go ifShops tracking whether marketing and retention are filling the bays
Skip ifYou look at it alone; a high count at a low ARO can still leave revenue short
Why #2 over #3: It shows how full the bays are, which a labor rate cannot show.
3
Effective Labor Rate (Auto Repair Shop)
Photo: Shixart1985 / CC BY 2.0 via Wikimedia Commons
Answrs VerdictThe pricing KPI.
Definition: Total labor sales in dollars divided by total labor hours billed (Ratchet+Wrench, AutoZone sponsored content)Tekmetric Shop Index, vendor data: National average of $134.92, top 25% at $154.06 and median of $134.31, through June 2026Ratchet+Wrench benchmark, 2023: Industry average of $90+ and optimal benchmark of $100+; these are older and lower than the Tekmetric figuresKaizen CPAs, 2025: An effective rate more than 10-15% below the posted rate signals money slipping through the cracks
Effective labor rate is labor sales divided by labor hours billed. Tekmetric reports $134.92 for the national average and $154.06 for the top 25%, and Kaizen CPAs flags a rate more than 10-15% below the posted rate.
Go ifShops that post one hourly rate but discount, flat-rate or package labor
Skip ifYou only sell parts; the rate describes labor dollars per billed hour
Why #3 over #4: It shows what labor really earns per hour, which margin percentages hide.
4
Gross Profit on Labor (Auto Repair Shop)
Photo: Shixart1985 / CC BY 2.0 via Wikimedia Commons
Answrs VerdictThe labor-margin KPI.
Definition: Job revenue minus the labor cost of completing it, excluding overhead (Ratchet+Wrench, AutoZone sponsored content)Ratchet+Wrench benchmark, 2023: Industry average of 60-69% and optimal benchmark of 70-75%Kaizen CPAs, 2025: Labor gross profit of 60-70%ASA AutoInc, 2015: Minimum 60% when technician cost is loaded with payroll taxes and similar costs; 68 to 72 percent when only the hourly wage is subtracted
Labor gross profit is job revenue minus technician labor cost. Ratchet+Wrench lists an average of 60-69% and an optimal 70-75%, and ASA AutoInc gave a 60% minimum when costs are loaded.
Go ifOwners who pay technicians flat rate or hourly and want to see what labor leaves behind
Skip ifYou cannot say whether a source loads technician costs; the same shop scores differently each way
Why #4 over #5: It shows what labor leaves after paying technicians, which parts margin leaves out.
5
Gross Profit on Parts (Auto Repair Shop)
Photo: Visitor7 / CC BY-SA 3.0 via Wikimedia Commons
Answrs VerdictThe parts-margin KPI.
Definition: Job revenue minus the parts cost of completing it, excluding overhead (Ratchet+Wrench, AutoZone sponsored content)Tekmetric Shop Index, vendor data: Parts margin of 58% for the national average, 65% for the top 25% and 56% for the median shop, through June 2026Ratchet+Wrench benchmark, 2023: Industry average of 50-59% and optimal benchmark of 60%+Kaizen CPAs, 2025: Parts gross profit of 50-55%WickedFile, 2026: A blended 45-55% for general repair, which the vendor calls directional rather than a standard
Parts margin is retail price minus cost, divided by retail price. Tekmetric reports 58% for the national average and 65% for the top 25%, while Ratchet+Wrench lists an optimal 60%+.
Go ifShops whose parts matrix has not been checked in a while
Skip ifYou mostly sell labor, such as diagnostics; parts margin then explains little
Why #5 over #6: It checks the matrix that sets parts prices, which technician measures cannot.
6
Technician Efficiency (Auto Repair Shop)
Photo: ANT Berezhnyi / CC BY 3.0 via Wikimedia Commons
Answrs VerdictThe skill KPI.
Definition: Flat rate hours produced divided by actual hours worked (Ratchet+Wrench, AutoZone sponsored content)Ratchet+Wrench benchmark, 2023: Industry average of 80-99% and optimal benchmark of 100%+Ratchet+Wrench 2024 Industry Survey: 31% of shops reported 80-99% efficiency, 11% reported 100-109%, 27% reported less than 80% and 18% do not track itMOTOR, 2022: Describes efficiency as the skill needed to beat book times, separate from productivity
Efficiency is flat rate hours produced divided by hours worked. Ratchet+Wrench lists an average of 80-99% and an optimal 100%+, and its 2024 survey found 31% of shops in the 80-99% band and 18% not tracking it.
Go ifShops that bill flat-rate hours and want to see who beats book time
Skip ifYou bill by the actual hour; flat-rate hours produced versus worked tells you little
Why #6 over #7: It measures skill against book time, which productivity does not.
7
Technician Productivity (Auto Repair Shop)
Photo: W.carter / CC BY-SA 4.0 via Wikimedia Commons
Answrs VerdictThe utilization KPI.
Definition: Hours worked divided by hours available; it compares the time a technician is available with the time spent on paid repair orders (Ratchet+Wrench, AutoZone sponsored content)Ratchet+Wrench benchmark, 2023: Industry average of 80-89% and optimal benchmark of 90%+Ratchet+Wrench survey: Only 41 percent of surveyed shops with average annual revenue of $1 million or more reported productivity above 90 percentMOTOR, 2022: Describes productivity as billable hours compared with available hours
Productivity is hours worked divided by hours available. Ratchet+Wrench lists an average of 80-89% and an optimal 90%+, and says only 41 percent of surveyed shops over $1 million in revenue topped 90 percent.
Go ifOwners who suspect bays sit idle between jobs
Skip ifYou want to judge skill; productivity measures how busy the technician is kept
Why #7 over #8: It shows idle time between jobs, which the closing ratio cannot show.
8
Closing Ratio (Auto Repair Shop)
Photo: G. Edward Johnson / CC BY 4.0 via Wikimedia Commons
Answrs VerdictThe approval KPI.
Definition: The percentage of items sold on any given visit, regardless of cost, scope or scale (Ratchet+Wrench, AutoZone sponsored content)Ratchet+Wrench benchmark, 2023: Industry average of 50-59% and optimal benchmark of 60%+; for shops doing more than routine maintenance many experts cite about 75-85%AutoVitals, 2022: Calls the related quote capture rate the percentage of shop-generated quotes that become repair orders and suggests tracking new and existing customers separatelyCaveat: The source prints its formula inverted against its own definition, so use sold divided by offered
Closing ratio is the percentage of items sold on a visit. Ratchet+Wrench lists an average of 50-59% and an optimal 60%+, with about 75-85% cited for shops doing more than routine maintenance.
Go ifShops that inspect every car and want to know how many recommendations get approved
Skip ifYou do not record what was offered; without it the ratio cannot be built
Why #8 over #9: It shows how many recommendations customers approve, which hours per order only implies.
9
Average Hours per Repair Order (Auto Repair Shop)
Photo: Martin Vorel / CC BY-SA 4.0 via Wikimedia Commons
Answrs VerdictThe depth-of-work KPI.
Definition: The average technician time per repair order: hours worked in a week divided by repair orders in a week (Ratchet+Wrench, AutoZone sponsored content)Ratchet+Wrench benchmark, 2023: Industry average of 2.50-3.25 hours and optimal benchmark of 3.50+Ratchet+Wrench 2024 Industry Survey: Technicians spending 2-2.5 hours on a repair were 36% of shops, 2.5-3 hours 22% and over 3.5 hours 16%; this is time on a repair, not hours per repair order
Hours per repair order is hours worked in a week divided by repair orders in a week. Ratchet+Wrench lists an average of 2.50-3.25 hours and an optimal 3.50+.
Go ifShops checking whether inspections are finding enough work per visit
Skip ifYou do mostly quick-lube visits; a low figure there is normal
Why #9 over #10: It shows how much work each visit holds, which a comeback count cannot.
10
Comeback Rate (Auto Repair Shop)
Photo: ProjectManhattan / CC BY-SA 3.0 via Wikimedia Commons
Answrs VerdictThe quality KPI.
Definition: A return visit for the same fault, same system or same component within a defined window, typically 30 days, where the original repair did not hold (OxMaint)OxMaint, vendor scale: Good is under 3%, watch is 3% to 6% and poor is above 6%Caveat: OxMaint is a maintenance software vendor writing for fleet shops, and no independent benchmark for independent repair shops was found
Comeback rate counts return visits for the same fault, typically within 30 days. OxMaint, a fleet-focused software vendor, calls under 3% good and above 6% poor; no independent shop benchmark was found.
Go ifShops that want a quality check beside the money KPIs
Skip ifYou need an industry standard; the only published scale found is one vendor’s fleet-shop guide
How we ranked these
We ranked auto repair KPIs on how directly they measure what a shop earns and how clearly a published source defines them, using the Tekmetric Shop Index and blog, Ratchet+Wrench’s AutoZone-sponsored KPI series and 2024 industry survey, MOTOR, ASA AutoInc, Kaizen CPAs, AutoVitals, WickedFile and OxMaint. Vendor and sponsored figures are labeled as such, and each carries its own period. Facts are taken from each maker's own published information; check the official site before you buy.
Questions people ask
What is a good average repair order for an auto repair shop?
Ratchet+Wrench puts the optimal benchmark at $400+. Tekmetric reports a national average of $704.25 and a top 25% of $879.38 across more than 10,000 shops through June 2026. The Tekmetric figures come from a software vendor.
What is a good effective labor rate?
Tekmetric reports a national average of $134.92 and a top 25% of $154.06 through June 2026. Ratchet+Wrench’s 2023 sponsored benchmark was an optimal $100+. Kaizen CPAs says a rate more than 10-15% below your posted rate signals lost money.
What is a good parts margin?
Tekmetric reports 58% for the national average and 65% for the top 25%. Ratchet+Wrench lists an optimal 60%+ for gross profit on parts, and Kaizen CPAs lists 50-55%.
What is a good labor gross profit?
Ratchet+Wrench lists an industry average of 60-69% and an optimal 70-75%. ASA AutoInc wrote in 2015 that 60% is the minimum when technician costs are loaded.
Ratchet+Wrench optimal benchmarks, percent at a glance
Closing Ratio60 %
Gross Profit on Parts60 %
Gross Profit on Labor70 %
Technician Productivity90 %
Technician Efficiency100 %
Official sites
- Average Repair Order (Auto Repair Shop) · ratchetandwrench.com
- Car Count (Auto Repair Shop) · tours.tekmetric.com
- Effective Labor Rate (Auto Repair Shop) · ratchetandwrench.com
- Gross Profit on Labor (Auto Repair Shop) · ratchetandwrench.com
- Gross Profit on Parts (Auto Repair Shop) · ratchetandwrench.com
- Technician Efficiency (Auto Repair Shop) · ratchetandwrench.com
- Technician Productivity (Auto Repair Shop) · ratchetandwrench.com
- Closing Ratio (Auto Repair Shop) · ratchetandwrench.com
- Average Hours per Repair Order (Auto Repair Shop) · ratchetandwrench.com
- Comeback Rate (Auto Repair Shop) · oxmaint.com
Sources
- tekmetric.com
- motor.com
- kaizencpas.com
- autoinc.org
- ratchetandwrench.com
- blog.autovitals.com
- wickedfile.com
Prices, specs and availability change; confirm on the official site before you buy.