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SHOP STARTUP COST CALCULATOR

Most shops that fail do not fail on the equipment bill. They fail three months in, with a full schedule and no cash, because nobody costed the runway. This worksheet asks for both: what you spend once, and what the doors cost to keep open while the phone learns your number.

Two numbers, not one

The one-off block is lifts, tooling, a scan platform, build-out, signage, the lease deposit, licences and the first insurance premium. The runway block is rent, payroll, software and insurance multiplied by however many months you expect to run below break-even. Published bands cover the first number — $70,000–$150,000 and up is the common one — and almost never the second.

What the equipment tiers assume

TierPer bayShared tooling
LeanUsed two-post lift, jack, stands, basic airEntry scan tool, press, torch set
StandardNew two-post lift, air, bench, waste handlingMid scan platform, A/C machine, tyre changer and balancer
FullMixed two- and four-post, dedicated alignment bayTwo scan platforms, ADAS targets, alignment rack

The per-bay figures in the sheet are placeholders in the right order of magnitude. Replace them with real quotes as they land — equipment is the one line where a phone call beats a published band every time.

What this sheet deliberately leaves out

Parts inventory, because a shop that orders per job carries almost none. Vehicle finance, because a service van is a separate decision. And the owner’s own draw, which is the number that actually determines whether the business is viable — run it once you have a door rate from the labor rate calculator and a realistic billed-hours figure from the efficiency calculator.

The order to do this in

Capital last, not first. Work out what you will charge, how many hours you can bill, and what those hours have to cover; then this sheet tells you what it costs to get to the first one. The startup guide walks the sequence, and insurance is the line most often underestimated in a first budget.

PUBLISHED STARTUP BANDS

Startup, common band
$70,000–$150,000 and up
Equipment, fully kitted
$75,000–$150,000 for a fully equipped shop
Garage liability
$1,300–$2,500 a year
All-in insurance average
$107 a month, about $1,286 a year
Technician median wage
$50,620 a year (median, May 2025)
Typical net margin
3–9% net

SOURCES

Each line is where a figure on this page came from and the date it was read.

FigureSourceRead
Common startup capital bandAutoLeap — How to Start an Auto Repair Shop in 2026
Equipment and tooling bandSharpsheets — Auto Repair Startup Costs
Garage liability annual premiumFit Small Business — Garage Liability Insurance
All-in shop insurance averageMoneyGeek — Auto Repair Shop Business Insurance
Technician median wage for payroll planningU.S. Bureau of Labor Statistics — Occupational Outlook Handbook
Typical independent-shop net marginSunbit — Good Profit Margin for an Auto Repair Shop