Gross Margins = Parts + Pay / Revenue

  • The outcome will be a decimal number. Move decimal to make whole number and subtract it from 100 aka 100% to get actual margin.

Example Gross Margins Calculation

  • Parts/inventory = $250.00
  • Tech Pay = $45.00
  • Revenue = $730.00

$250.00 + $45.00 / $750.00 = .40

100 – 40 = 60% Margin

 

Calculating Gross Margins

  • This Video goes over what gross margins are
  • The easiest way to determine them
  • How to quickly calculate them with a spreadsheet or calculator.