Cleaning Business Profit Margin Calculator

Q: How do I calculate my cleaning business profit margin?

Subtract total monthly expenses from total monthly revenue to get net profit. Divide net profit by revenue and multiply by 100 to get the percentage. For example, $8,000 revenue minus $4,400 expenses equals $3,600 net profit, or a 45% margin.

Q: What are the biggest expenses in a cleaning business?

Labor is the biggest expense at 40-50% of revenue. After labor: transportation (5-8%), cleaning supplies (3-6%), business insurance (2-4%), and marketing (2-5%).

Enter your monthly revenue and expenses to instantly see your profit margin, per-client metrics, and how you compare to industry benchmarks.

Revenue

Monthly Revenue ($)

Number of Clients

Average Price Per Client ($) Auto-calculated from revenue and clients

Monthly Expenses

Labor Costs ($) Employee wages, your own pay

Cleaning Supplies ($)

Transportation ($)

Insurance ($)

Marketing ($)

Software & Tools ($)

Other Expenses ($)

Industry Insights

Understanding Profit Margins in the Cleaning Industry

Knowing your numbers is the difference between a cleaning business that survives and one that thrives.

Average Cleaning Business Profit Margins

The cleaning industry sees profit margins ranging from 10% to 28%, depending on business size, type of service, and operational efficiency. Solo operators working residential accounts often land at the higher end because they keep overhead minimal.

Commercial and janitorial cleaning companies typically operate on tighter margins (10-15%) but make up for it with higher contract values and recurring revenue.

Your Biggest Expenses (and How to Control Them)

Labor is the dominant cost in any cleaning business, usually consuming 40-50% of revenue.

Labor: 40-50% of revenue (largest cost by far)
Transportation: 5-8% (fuel, vehicle maintenance, auto insurance)
Cleaning supplies: 3-6% (chemicals, rags, equipment replacement)
Insurance: 2-4% (general liability, bonding, workers' comp)
Marketing: 2-5% (Google Ads, social media, referral programs)

How to Improve Your Profit Margin

The most successful cleaning businesses focus on both sides of the equation: growing revenue per client while keeping expenses flat.

Raise prices annually (even 5-10% makes a significant impact over time)
Upsell add-on services like fridge cleaning, oven deep clean, or laundry
Optimize routes to reduce drive time between jobs
Buy supplies in bulk from wholesale distributors
Reduce employee turnover with competitive pay and good culture
Use scheduling software to maximize jobs per day per team

Scaling Profitably

When scaling, your margin will temporarily dip as you invest in new employees, equipment, and marketing. This is normal. Track your numbers closely during growth phases so you can adjust before a temporary dip becomes permanent.

Aim to break even on new hires within 30-60 days. Use tools like this profit margin calculator monthly to stay on top of your financial health.

FAQ

Profit Margin Calculator FAQ

What is a good profit margin for a cleaning business?

A good profit margin for a cleaning business typically falls between 10% and 28%. Solo operators and small residential cleaning businesses often achieve margins on the higher end (20-28%) because of lower overhead, while larger companies with employees tend to see margins between 10-20%. A margin above 20% is considered strong. If your margin is below 10%, it is time to revisit pricing or cut costs.

How do I calculate my cleaning business profit margin?

Subtract your total monthly expenses from your total monthly revenue to get your net profit. Then divide net profit by total revenue and multiply by 100. For example, $8,000 revenue minus $4,400 expenses equals $3,600 net profit and a 45% profit margin.

What are the biggest expenses in a cleaning business?

Labor is by far the biggest expense at 40-50% of revenue, including employee wages, payroll taxes, and benefits. After labor, the next largest costs are transportation (5-8%), cleaning supplies (3-6%), business insurance (2-4%), and marketing (2-5%).

How can I increase my cleaning business profit margin?

Raise prices annually, optimize routes to reduce fuel costs, buy supplies in bulk, upsell add-on services to existing clients, reduce employee turnover through better training and competitive pay, and use scheduling software to maximize jobs per day per team.