Parts markup calculator

Turn a part's cost into a sell price with a markup multiplier, and see the gross margin you keep. Or enter the margin you want and get the multiplier.

Sell price
$72.00
Profit on the part
$32.00
Gross margin
44.4%

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How it works

Markup and margin are not the same number. A 2.0 markup (cost times two) is a 50% margin. Mixing them up is one of the most common pricing mistakes in a shop.

Many shops use a parts matrix: a bigger markup on cheap parts, a smaller one on expensive parts, so a $12 filter and a $900 compressor are both priced sensibly.

Example: a $40 part at a 1.8 markup sells for $72.00. You keep $32.00, a 44% margin.

Track this every month without a spreadsheet: Parts pricing in Gearboxly.

Questions shops ask

How do I convert markup to margin?

Margin = 1 − 1 ÷ markup. A 1.5 markup is a 33% margin; a 2.0 markup is 50%.

What markup should a repair shop use on parts?

There is no single right number. Many shops use a matrix with higher multipliers on low-cost parts and lower ones on expensive parts. Check what your market accepts and what margin you need.

Can Gearboxly apply my matrix automatically?

Yes. Set your tiers once in Settings and every part you add is priced the same way.

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