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Tyre Shop Margin Calculator 2025/26

Calculate the margin per tyre fit for a UK tyre shop or mobile tyre fitting service. Enter your trade tyre supply cost, fitting labour, wheel balancing charge, TPMS reset cost and overhead allocation to find your gross margin and break-even retail price.

Key Inputs

  • Tyre supply cost (trade price from wholesaler)
  • Fitting labour per tyre (£)
  • Wheel balancing cost per wheel
  • TPMS sensor reset or replacement cost (if applicable)
  • Overhead allocation per job (bay cost, equipment depreciation, insurance)
  • Retail price charged to customer per tyre fitted

What You'll Get

  • Total cost per tyre fitted (supply + labour + overhead)
  • Gross profit per tyre
  • Gross margin percentage
  • Minimum viable retail price
  • Monthly profit at target volume

Important Notes — 2025/26 Rates & Caveats

Tyre margins in the UK are under pressure from online retailers. Most independent tyre fitters source from wholesalers at 20–40% below retail price. Fitting charges range from £10–£25 per tyre. Balancing is typically £6–£12 per wheel. TPMS reset: £15–£30 per wheel. Premium brands (Michelin, Continental, Bridgestone) carry better margins than budget tyres. Mobile tyre fitting typically commands a £20–£40 convenience premium over fixed-site fitting. The 2025 TPMS mandate means most post-2014 vehicles require a TPMS reset or sensor replacement during a tyre change.

Frequently Asked Questions

What is a typical margin on tyres for a UK garage?

Independent tyre shops in the UK typically achieve a gross margin of 20–40% on tyre supply, plus a fixed fitting charge. The blended margin per tyre (supply + fit + balance) is typically 30–50% of the retail price. Budget tyre lines have lower absolute margin but higher volume; premium brands (Michelin, Continental) offer higher per-unit profit. Many garages use tyres as a gateway service to upsell alignment checks and associated mechanical work.

Is TPMS reset required by law in the UK?

All new cars sold in the UK from November 2014 must be fitted with a Tyre Pressure Monitoring System (TPMS) under EU regulation 661/2009. If a tyre is replaced on a vehicle with direct TPMS, the sensor must be checked and reset (or replaced if faulty) to avoid an MOT failure. The TPMS warning light being permanently illuminated is an MOT advisory; a system that is missing or non-functional is an MOT failure. Garages should always include TPMS reset in their tyre fitting price or charge separately.

Can a tyre shop beat online tyre prices?

Many independent tyre shops can access trade pricing that is comparable to or below online retailer supply prices, especially for mid-range and premium brands through national buying groups (e.g. Tyre Shopper, National Tyres trade accounts, Auto-International). Competing on price alone is difficult against online fitters; most successful independents differentiate on convenience, speed, wheel alignment upsell and local reputation. Offering a price-match policy can prevent losing customers to online-buy-and-fit services.

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