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Profit Margin Calculator

Enter job revenue and costs, see gross margin, markup %, and profit. Pre-loaded with cleaning industry benchmarks (45-50% target margin).

Labor

Typical: $4-8 per residential clean

% of revenue allocated to overhead (vehicle, insurance, software, marketing)

Results

Gross Profit
--
Gross Margin
--
Markup
--
Cost per $1 Revenue
--

Cleaning Industry Benchmarks

Industry Avg Gross Margin 45 – 50%
Top Performers 55%+
Underpricing Warning Below 35%
Your Gross Margin --
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How to Use This Calculator

1. Enter your job revenue. This is the total amount you charge the customer for the cleaning service.

2. Fill in labor details. Enter the number of cleaners, hours worked, and hourly wage. Use the actual wage you pay, not the billing rate.

3. Add supplies cost. Typical residential cleaning supplies run $4-8 per job (all-purpose cleaner, disinfectant, glass cleaner, trash bags, etc.).

4. Set your overhead percentage. Most cleaning businesses run 25-35% overhead. This covers vehicle, insurance, software, and marketing costs.

How Profit Margin Works

Labor_Cost = Cleaners x Hours x Hourly_Wage

Total_Cost = Labor + Supplies + (Revenue x Overhead%)

Profit = Revenue - Total_Cost

Gross_Margin = (Profit / Revenue) x 100

Markup = (Profit / Total_Cost) x 100

Example: A $250 maintenance clean with $60 in labor (1 cleaner x 3 hrs x $20), $6 in supplies, and 30% overhead ($75). Total cost is $141. Profit is $109. Gross margin is 43.6%.

Frequently Asked Questions

What is a good profit margin for a cleaning business?
The industry average gross margin for cleaning businesses is 45-50%. Top-performing companies hit 55% or higher. If your gross margin is consistently below 35%, you are likely underpricing your services. Residential maintenance cleaning typically targets 45-55% gross margin.
What is the difference between margin and markup?
Margin is profit as a percentage of revenue (selling price). Markup is profit as a percentage of cost. For example, if a job costs $150 and you charge $250, your profit is $100. Your margin is 40% ($100 / $250) and your markup is 66.7% ($100 / $150). They describe the same profit from different reference points.
How do I calculate overhead for a cleaning job?
Overhead includes vehicle payments, insurance, software subscriptions, marketing, and administrative costs. Most cleaning businesses run 25-35% overhead as a percentage of revenue. To find yours, divide total annual overhead costs by total annual revenue. If you do not track it, 30% is a solid starting point.

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