Average Repair Order for Auto Repair Shops (2026)
What average repair order means, how to calculate it, how your ARO compares with Tekmetric's 2026 benchmarks, and how to raise it without upselling.
Average repair order (ARO) is the average amount billed per repair order. It's the second half of the sales equation, after car count, and it's the number most owners try to push first. Pushed the wrong way it costs you trust; pushed the right way it just means customers hear about everything their car needs.
More on this topic: Pricing and shop numbers, every guide in one place.
Here's the formula, current benchmarks, the ways ARO misleads you, and the honest ways to raise it.
The short answer
Average repair order is total repair order sales divided by the number of repair orders in the same period. Tekmetric's Shop Index (data through June 2026) puts it at $704.25 on average, $649.88 for the median shop and $879.38 for the top 25%. Raise it with thorough photo inspections, good-better-best options and showing declined work at the next visit.
Key takeaways
- ARO = total repair order sales ÷ number of repair orders. Decide once whether you include tax and fees, and keep it the same.
- Tekmetric's 2026 benchmark: $704.25 average, $649.88 median, $879.38 for the top 25%, from its own customers' shops.
- ARO rises when car count falls or quick services leave, so never read it alone: pair it with car count and estimate approval rate.
- The honest levers are inspection quality, clear options and remembering declined work, not pressure at the counter.
Disclosure: we make BayRobin, an AI receptionist and front office for independent repair shops, and show where it fits. Everything here works without it. Figures from other companies come from their public pages, checked in October 2026 and linked at the end.
How do you calculate average repair order?
ARO = total sales on closed repair orders ÷ number of closed repair orders, for the same period.
Example (illustration, not data): last month you closed 110 repair orders totaling $74,800. Your ARO is $74,800 ÷ 110 = $680.
Three choices change the number, so make them once and write them down:
- Tax: most owners leave sales tax out, since it isn't your money.
- Zero-dollar orders: warranty comebacks and free checks inflate the count. Many shops exclude them, but track them separately.
- Fleet and internal work: if fleet tickets look very different from retail, track them as a separate ARO.
Check how your shop software counts ARO before comparing with any benchmark; Tekmetric's index page doesn't spell out its definition.
What is a good average repair order in 2026?
| Measure | National average | Median shop | Top 25% |
|---|---|---|---|
| Average repair order | $704.25 | $649.88 | $879.38 |
| Monthly car count | 118 | 97 | 180 |
| Parts margin | 58% | 56% | 65% |
Source: Tekmetric's Shop Index, from more than 10,000 North American shops using its software, data through June 2026. Shop type matters: a transmission or diesel shop should run well above these numbers, and a quick-service or tire shop well below. Compare yourself with your own last 12 months first.
Why can average repair order be misleading?
ARO is a ratio, so it moves when either side moves. A few ways it fools owners:
- Fewer small jobs lift ARO. Stop doing oil changes and your ARO jumps while sales and future repair work fall.
- One big job skews a month. A $9,000 engine on a 100-car month adds $90 to ARO by itself.
- High ARO with low approval can mean you're presenting large estimates that customers decline and take elsewhere.
- Rising prices lift ARO without any change in what you're selling.
Read ARO together with car count, estimate approval rate (approved dollars ÷ presented dollars) and hours per repair order. Sales are roughly car count times ARO, so a healthy month moves both or trades one for the other on purpose. The free shop revenue calculator lets you test that trade: more cars a day against a bigger ticket.
| Example month (illustration) | Cars | ARO | Sales |
|---|---|---|---|
| Baseline | 110 | $680 | $74,800 |
| Dropped oil changes | 90 | $780 | $70,200 |
| Better inspections, same cars | 110 | $740 | $81,400 |
The second row looks better on ARO and is worse for the business.
ARO is also sales, not profit: a bigger ticket heavy on low-margin parts or sublet can leave less than a smaller one. To see what a single ticket actually earns, break it into labor, parts, sublet and fees with the free repair order gross profit calculator.
How do you increase average repair order honestly?
1. Inspect every car the same way, with photos
A consistent multi-point inspection on every visit finds work a quick look misses, and photos of a leaking gasket or a cracked belt let the customer see it for themselves. Grade items green, yellow and red so the customer knows what's urgent and what can wait. See the digital vehicle inspection guide.
2. Present good, better, best where it fits
On brakes, tires and batteries, offer two or three real options with a clear difference (warranty, part grade, what's included). Many customers pick the middle. Don't invent a weak "good" option to steer people; offer only what you'd stand behind.
3. Prioritize, don't dump
List safety items first, then items that will cost more if they wait, then maintenance. A $2,400 estimate presented as "$650 today for safety, the rest within three months" gets more approved than a single number. How to write an auto repair estimate covers the layout.
4. Show declined work at the next visit
Record every declined item with the date, mileage and photo. When the car comes back, the service writer opens with it. Follow up between visits too, at about two weeks and three months. More in declined repairs follow-up.
5. Charge for what you already do
Diagnostic time, and the supplies and disposal fees your state lets you itemize, left off the ticket lower ARO and effective labor rate. Build canned jobs so the same job is always priced the same way. See effective labor rate.
6. Check the maintenance schedule
At each visit, check the vehicle's mileage against the maker's maintenance schedule and mention what's due. That's a service, not an upsell, and it's what customers expect a good shop to do. It matters more every year: S&P Global Mobility put the average US light vehicle at a record 12.8 years old in 2025, and older vehicles come due for more of the schedule.
Most shop management systems handle the follow-through. In BayRobin, for example, technicians grade each inspection item green, yellow or red with notes and photos from their phone's browser, and the customer approves or declines each service on one link.
What ARO tactics should you avoid?
- Commission-only service writers paid on ticket size, with no check on approval rate or comebacks.
- Recommending flushes or parts the maker's schedule doesn't call for at that mileage.
- "Free inspection" offers that exist only to produce a long estimate.
- Raising ARO targets without tracking customer return rate; trust lost now shows up as lower car count next year.
Frequently asked questions
What is the average repair order for auto repair shops in 2026?
Tekmetric's Shop Index, from more than 10,000 shops using its software with data through June 2026, shows a national average ARO of $704.25. The median shop is at $649.88 and the top 25% average $879.38. Specialty shops can be well above or below.
How do you calculate ARO?
Divide total sales on closed repair orders by the number of closed repair orders in the same period. For example, $74,800 across 110 orders is an ARO of $680. Decide whether to include tax and zero-dollar warranty tickets, and stay consistent.
Is a higher ARO always better?
No. ARO rises if you drop small jobs or if one large repair lands in a slow month. Read it with car count and estimate approval rate; total sales and returning customers are what matter.
How can a shop increase ARO without upselling?
Inspect every car the same way with photos, present prioritized options, and remind customers of declined work at the next visit. Charging consistently for diagnostics and fees you already perform also lifts it.
What is the difference between ARO and average ticket?
Most shops use them to mean the same thing: average sales per repair order. Some count a ticket per vehicle visit and an RO per authorization, so check your software's definition before comparing.
Where BayRobin fits
BayRobin can help with the follow-through: photo inspections, per-item approval on one link, open-estimate follow-up texts on day 2, 5 and 10, and declined-work texts 14 and 90 days later. BayRobin is free until your first 10 booked jobs, no card up front. Start free or see pricing.
Related: how to increase car count, auto repair shop KPIs, digital vehicle inspections, inspections, estimates and invoices.
Sources
Competitor details in this post were checked against these public pages in October 2026. Products and prices change, so confirm with each vendor before you decide.
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