Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
True margin per tire
$53.50
Margin per set of 4
$214.00
Tire-only gross margin %
28.5%
Mount/balance net margin per tire
$10.50
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How to use this
- 1Enter sell price per tire ($).
- 2Enter tire cost from vendor ($).
- 3Enter mount/balance fee per tire ($).
- 4Enter mount/balance labor cost per tire ($).
- 5Enter disposal fee cost (pass-through) ($).
- 6Enter warranty/road hazard reserve per tire ($).
- 7Read your true margin per tire on the right — it updates as you type.
- 8Hit Share to keep the scenario or send it to someone.
About this calculator
Tire margin looks thin on the sticker price alone, but the full picture includes mount/balance labor revenue, disposal and FET pass-through, and a warranty/road hazard reserve that should be set aside per unit sold rather than expensed only when a claim happens. This calculator adds all of those pieces to show true profit per tire and per set of four, which matters because tire GP percentage alone (often quoted at 20-30% on the tire itself) understates real profitability once labor attach and add-on sales like alignments and TPMS service are included. Use it to compare vendor cost changes, decide whether a promotional price still clears your minimum margin per unit, and size your warranty reserve realistically instead of guessing.
Worked example
Using the values the calculator loads with:
Inputs
- Sell price per tire: 165 $
- Tire cost from vendor: 118 $
- Mount/balance fee per tire: 22 $
- Mount/balance labor cost per tire: 8 $
- Disposal fee cost (pass-through): 3.5 $
- Warranty/road hazard reserve per tire: 4 $
Results
- True margin per tire: $53.50
- Margin per set of 4: $214.00
- Tire-only gross margin %: 28.5%
- Mount/balance net margin per tire: $10.50
What each field means
Inputs
- Sell price per tire ($)
- The sell price per tire used in the calculation, measured in $. Starts at 165 $ so you have a working example on load.
- Tire cost from vendor ($)
- The tire cost from vendor used in the calculation, measured in $. Starts at 118 $ so you have a working example on load.
- Mount/balance fee per tire ($)
- The mount/balance fee per tire used in the calculation, measured in $. Starts at 22 $ so you have a working example on load.
- Mount/balance labor cost per tire ($)
- The mount/balance labor cost per tire used in the calculation, measured in $. Starts at 8 $ so you have a working example on load.
- Disposal fee cost (pass-through) ($)
- The disposal fee cost (pass-through) used in the calculation, measured in $. Starts at 3.5 $ so you have a working example on load.
- Warranty/road hazard reserve per tire ($)
- The warranty/road hazard reserve per tire used in the calculation, measured in $. Starts at 4 $ so you have a working example on load.
Results
- True margin per tire
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Margin per set of 4
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Tire-only gross margin %
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Mount/balance net margin per tire
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why include mount and balance in tire margin?
Because a tire almost never sells without it, and the labor attach is often the more profitable half of the transaction — a $22 mount/balance fee against $8 in labor cost is 64% margin, much richer than the tire itself, so ignoring it understates how profitable tire sales really are.
What's a realistic warranty reserve?
$2-$6 per tire depending on your road hazard program's claim rate and average claim cost. Set it from your actual trailing 12-month claims paid divided by tires sold, not a guess, and revisit it yearly since claim rates drift with the brands and road conditions you sell into.
Should FET (federal excise tax) affect margin calculations?
FET is a pass-through cost on certain truck tires and shouldn't be treated as revenue or margin — include it in cost and sell price equally so it nets to zero in your margin calculation, the same treatment as disposal fees.
How do promotional tire prices affect this?
Run the promo sell price through this calculator before advertising it. A common mistake is discounting the tire price to match a competitor's ad without checking whether mount/balance and reserve still leave a positive per-tire margin once the discount is applied.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Tire Shop Margin Per Unit Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/tire-shop-margin-per-unit
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/tire-shop-margin-per-unit" target="_blank" rel="noopener">Tire Shop Margin Per Unit Calculator — RevenueLab</a> (2026).</p>
Source: [Tire Shop Margin Per Unit Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/tire-shop-margin-per-unit) (2026).