What you'll get from this guide
- A healthy cleaning business targets 10–28% net profit margin after all costs.
- Gross margin should be 50–65% — if yours is below 40%, your pricing is likely too low.
- The formula: Net Margin = (Revenue − All Costs) ÷ Revenue × 100.
- Use this calculator to see exactly where your margin stands and what needs to change.
Profit Margin Calculator
Enter your monthly numbers to see gross and net margin.
Net Profit Margin
31%
Gross Margin49%
Monthly Net Profit$3,750
Monthly Gross Profit$5,900
Total Monthly Costs$8,250
Estimates are for planning only. Actual pricing depends on site conditions.
What Is a Good Profit Margin for a Cleaning Business?
Most healthy cleaning businesses operate at 10–28% net profit margin. Solo operators often reach 25–35% because they have no labor cost beyond their own time. Companies with employees typically land between 10–20%.
Gross margin (revenue minus direct job costs like labor and supplies) should be 50–65%. If your gross margin is below 40%, you are underpricing or overstaffing relative to the work.
Profit Margin FAQs
What profit margin should a cleaning business target?▼
Most cleaning businesses should target 10–28% net profit margin. Solo operators can often reach 25–35% because they have minimal labor overhead. Companies with W-2 employees typically land 10–20%.
What is the difference between gross margin and net margin?▼
Gross margin = (Revenue − Direct Costs) ÷ Revenue. It measures job-level profitability. Net margin = (Revenue − All Costs) ÷ Revenue. It measures overall business profitability after overhead, insurance, marketing, and admin.
Why is my cleaning business not profitable?▼
The most common reasons are underpricing jobs, high labor costs relative to revenue, excessive drive time between jobs, and not billing for add-on services. Calculate your actual cost per job and compare it to your quoted price.
How do I improve my cleaning business profit margin?▼
Raise prices on underpriced jobs, reduce drive time by clustering jobs geographically, add profitable add-on services, reduce no-shows with automated reminders, and review your labor efficiency regularly.
Should I track gross margin or net margin?▼
Track both. Gross margin tells you if individual jobs are priced correctly. Net margin tells you if the business as a whole is healthy after overhead.
Track Job Profitability Automatically
ServiceHub tracks revenue per job, per client, and per crew — so you always know which accounts are profitable.