Is ADAS Calibration a Profitable Service for Collision Shops?

If you’re thinking about offering ADAS calibration services as a collision, autobody, or mechanic shop, you’re likely wondering about the potential payoff. Is it actually worth it? 

Spoiler alert: The short answer is yes, ADAS calibrations are a highly profitable service for collision repair shops. 

And as more vehicles on the road have ADAS systems (and sometimes increasingly complex ones with more safety features), it’s more important than ever that shops are ready to offer calibration services. 

If you don’t, customers will find someone who can. 

Still, we understand that the investment to offer calibration services can seem a little daunting at first, especially for shops that have been operating the same way for years—if not decades— and have their processes down to a science. In this post, we will take a closer look at why ADAS calibration is a profitable service to offer clients and what that means for you. 

The revenue perks 

ADAS calibration services can be enormously lucrative, increasing your average value per repair significantly. 

In our experience, the average calibration costs between $350-500. Here are some ballpark numbers:

• Radar calibration: $300-$400
• Blind spot monitoring calibration: $300–$400
• Backup camera/sensor calibration: $250-$300
• Lane keep assist/ lane departure warning: $300-$400
• All-view-monitor/360-degree calibration: $350-$450

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With most vehicles having at least one ADAS system, you may be able to add roughly $1,250 per repair vehicle. This means you need to bring fewer cars into your shop to make more, and your revenue can increase significantly. 

Here’s what this may look like: 

If you calibrate just five cars per week for 51 working weeks in a year at an average price of $400 per calibration with a 70% profit margin, that equals over $71,000 of additional annual gross profit. And that's conservative, with many shops doing significantly more volume.

What about the resource, financial, and training costs? 

Yes, there are upfront investments required, but the return on investment makes them worthwhile for most shops. Let’s take a look at the different costs involved to give you a better understanding of what it looks.

In the meantime, if you’ve already decided to do so, here’s how to bring ADAS calibrations in-house. 

Equipment costs

The average cost of a calibration kit ranges from $10,000 to $50,000 for basic setups. More comprehensive systems can range higher, but many shops start with essential equipment and expand capabilities as revenue grows.

While this is a significant chunk of cash, ADAS equipment can pay for itself within a a year if you scale up your services effectively. 

Training costs

Organizations like I-CAR and ASE have developed comprehensive ADAS training programs. 

While training is another cost it's may be just a few thousand dollars per technician at most. Again, this is a cost that pays for itself quickly once you're performing calibrations regularly.

Time considerations

ADAS calibrations do add time to the repair process, but here's the thing—it's billable time. And bringing calibration work in-house can actually reduce your overall cycle time by up to two days compared to outsourcing, which decreases rental car expenses and improves customer satisfaction.

Space requirements

This is the biggest hurdle for many shops. The reality is that many collision repair facilities don't have the required space for calibrations. 

But even this challenge has solutions, which we’ll talk about in the next section. 

What about shops who don’t want to offer calibration services? 

There are some shops who just don’t want to offer calibration services. They don’t want the extra hassle, they don’t have enough experienced technicians, or they may not be able to because they don’t have sufficient shop space. 

We get it, but it’s important to be aware that, in addition to new revenue, not offering ADAS calibration can impact your existing customer base too.

As a consumer, if I need a windshield replaced on my 2022 CRV, I can tell you right now that I won't work with a vendor that can't offer calibrations. I’m busy, my schedule is complicated, and I don’t want two different appointments at two different locations. I want a one-stop-shop, and if my favorite local mechanic can’t complete a repair in its entirety, I’ll have to look elsewhere. 

Plenty of consumers feel the same, wanting a quick and easy experience.

Today's vehicle owners are increasingly aware that their safety systems need proper calibration after repairs. They don't want the hassle of making a second appointment at another facility, and they certainly don't want to drive around with potentially compromised safety features.

And your shop absolutely won’t offer calibration services yourself?

You can outsource calibrations to specialized providers, but be aware that you'll still be held liable for procedures performed incorrectly. You're also missing out on significant revenue that's walking out your door to competitors.

Many successful shops are developing partnerships with mobile calibration services or dedicated calibration centers. While you won't capture all the revenue, you can still maintain customer relationships and often receive referral fees.

You can also look into the “hub-and-spoke” model. Some industry experts predict many areas will operate under this model where several shops share a central calibration facility. This allows smaller shops to offer these services without the full equipment investment.

The bottom line: You can’t afford not to offer ADAS calibrations

The revenue potential of ADAS calibration services is significant, and the market demand continues to grow exponentially. Consider these key factors:

• Revenue growth: With 90%+ of new vehicles rolling off production lines equipped with at least one ADAS feature, the demand for calibration services will only increase.
• Competitive advantage: Shops offering ADAS calibrations can reduce cycle times, improve customer satisfaction, and capture high-margin work that competitors may be outsourcing.
• Safety and liability: Proper calibration ensures customer safety and protects your shop from liability issues related to improperly functioning safety systems.

The right tools can help you scale your revenue with ADAS calibrations, too. 

For example, Revv helped ADAS Specialists of Texas speed up the calibration process while maintaining accuracy, allowing the shop to increase its revenue by 75% in just nine months (hitting 1.4M in revenue by 2025).

Revv identifies and recommends missed calibrations, increasing upsell potential and boosting revenue by 15-20%. Our platform helps shops quickly and accurately identify required ADAS calibrations using VIN-specific reports and supporting OEM documentation, ensuring you never miss billable calibration work.

Rather than manually searching through OEM portals and technical documents, technicians can know calibration needs upfront, generate repair orders in advance, and streamline workflows, reducing cycle time by 30%.

Want to learn more about how we can help you scale up your ADAS calibration services—and your revenue? Book your demo today.