Bike Shop Revenue Calculator

Service tickets are mostly labor rather than cost-of-goods, so the calculator hardcodes a 70% margin assumption into the code (parts on a repair ticket are typically minor compared to the labor charge). Bike sales and accessories both carry real inventory cost, which is why those two get adjustable margin inputs while service profit is derived automatically from the ticket revenue you enter.

Total monthly revenue is simply the sum of what all three streams bring in before any costs are subtracted: bike sales revenue, service ticket revenue, and accessory sales. Gross profit applies each stream's margin — your entered bike and accessory margins plus the fixed 70% service margin — to get what's actually left after cost of goods, which is why profit is always lower than revenue and why a shop that shifts its mix toward more service (higher margin) than bike sales (lower margin) sees its overall margin percentage rise.

The calculator computes what share of total revenue comes from each stream, and a shop leaning heavily on bike sales carries more exposure to seasonal swings and inventory risk since bikes are big-ticket, infrequent purchases. A shop with a strong service mix tends to see steadier, higher-margin cash flow month to month, since repairs are a recurring need less tied to a single buying season.

No — it only computes revenue and gross profit across the three modeled streams (sales, service, accessories), not a full profit-and-loss statement. Fixed costs like rent, payroll beyond the service labor already baked into the 70% margin, utilities, and other overhead are outside its scope, so the annual gross profit figure is a starting point for a fuller budget, not your actual bottom-line net profit.