What's a good parts markup for a heavy-duty shop?

There's no single number. Industry surveys show most heavy-duty shops actually collect only 22% to 30% markup on parts, which is 18% to 23% margin, once discounts, overrides and fleet deals are counted. A tiered matrix with high markup on small parts and low markup on big-ticket parts is how shops close that gap without arguing every part at the counter.

What's the difference between markup and margin?

Markup is profit divided by what you paid for the part. Margin is profit divided by what you sold it for. A $100 part sold for $135 is a 35% markup and a 26% margin. Same dollars, different percentage, and mixing them up is how shops think they make more on parts than they do.

What is a parts matrix and why use one?

A parts matrix is a table of cost ranges, each with its own markup. Small parts get a high markup, big parts get a lower one. Every service writer prices the same part the same way, and nobody does math at the counter or guesses on a Friday afternoon.

Should I mark up core charges?

No. A core charge is a deposit the customer gets back when they return the old part. Pass it through at cost.

Should I mark up freight and special-order parts?

Many shops pass freight through or add a small handling fee, and use their normal matrix on special-order parts. Decide once and write it down so every service writer does the same thing.

What about fleet accounts that negotiate parts pricing?

Give them their own markup or a cost-plus deal in writing, and keep your matrix for everyone else.

Does this work for Canadian shops?

Yes. Enter costs in CAD and every result comes out in CAD.

Free calculator. No signup.

Parts Markup Calculator for Heavy‑Duty Repair Shops

Price one part, or build the whole matrix your counter runs on. See markup and margin side by side so you know what you really make.

5.0 from 78 shop reviews

Created by Fabian Bonjean. Founder and CEO of ShopView. Built Foothills Group from a single shop into one of Western Canada's largest independent heavy-duty repair operations.

Technician using an impact wrench on a heavy-duty truck wheel

Price one part

Part cost

Pricing method

Markup

From your matrix: $100.01 to $250 tier.

Rounding (optional)

Build your parts matrix

Cheap parts carry a higher markup because nobody price-shops a $4 fitting, and it still took someone's time to order, stock and bill it. Big parts carry less because fleets do price-shop a $3,000 turbo. Start here and adjust to your market.

Cost from	Cost to	Margin
$0		75%
$1.01		71%
$5.01		67%
$10.01		60%
$25.01		55%
$50.01		47%
$100.01		41%
$250.01		35%
$500.01		29%
$1,000.01		23%
$2,500.01	and up	17%

Your results

Sell price

$204.00

Gross profit: $84.00
Markup: 70%
Margin: 41%

A 70% markup is a 41% margin.

Get your matrix as a PDF and CSV. Tape the PDF by the parts counter.

Everything above is free to use without an email.

ShopView Inventory

Let ShopView apply your matrix on every work order.

Set the matrix once. Every part gets priced the same way at the counter and on the work order, whoever is on the desk, and nobody has to do math or look up a chart.

See Inventory Management

Technician pricing parts in ShopView on a laptop at the shop counter

How the math works

Five formulas, using your numbers from above.

1

Sell price from markup
cost × (1 + markup)

$120.00 × (1 + 0.7) = $204.00

Markup is a percentage of what you paid. A 70% markup on a $120 starter adds $84 on top of cost.
2

Sell price from margin
cost ÷ (1 − margin)

$120.00 ÷ (1 − 0.4118) = $204.00

Margin is a percentage of the sell price. Divide, never add. Same part, same price, different way to get there.
3

Markup to margin
markup ÷ (1 + markup)

0.7 ÷ (1 + 0.7) = 41.2%

Use this to check what your matrix really pays. Margin is always smaller than markup.
4

Margin to markup
margin ÷ (1 − margin)

0.4118 ÷ (1 − 0.4118) = 70%

Your accountant says you need 35% margin on parts. This tells the counter what markup to charge: 54%.
5

Extra profit from a markup change
monthly parts cost × (new markup − current markup)

$50,000 × (0.4 − 0.25) = $7,500 a month

Your cost of parts does not change when you raise markup. Every point goes straight to gross profit.

The common mistake. Adding 35% to cost does not give you a 35% margin. It gives you 26%. To make 35% margin you need a 54% markup.

Markup vs margin

Same $35 profit. Two different numbers.

Your accountant and your P&L report margin. Most counters price by markup. Set a 35% markup thinking it's 35% margin and parts profit lands about 9 points short, every month.

One starter Sold for $135

Markup Divide by what you paid

35%

$35 profit ÷ $100 cost

Margin Divide by what you sold it for

26%

$35 profit ÷ $135 sell price

Parts pricing questions

Next Step · Free Profit Leak Score

Parts is one piece. See where else money slips away.

Check your labor rate

Get Your Profit Leak Score Or book a demo of ShopView

Parts Markup Calculator for Heavy‑Duty Repair Shops

Price one part

Build your parts matrix

What a few points are worth

Get your matrix as a PDF and CSV. Tape the PDF by the parts counter.

Let ShopView apply your matrix on every work order.

How the math works

Sell price from markup

Sell price from margin

Markup to margin

Margin to markup

Extra profit from a markup change

Same $35 profit. Two different numbers.

Parts pricing questions

Parts is one piece. See where else money slips away.