Cleaning profit margin calculator
Enter what you charge and what the account actually costs to run. You get gross margin, net margin after overhead, and the price you would need to hit a 45% gross margin.
Re-price or re-scope. At this margin one supervisor visit erases the profit.
How cleaning margin actually works
Cleaning is a labour business, so margin is decided at the moment you set the hours — not when you send the invoice. Production rate (square feet cleaned per hour) sets the hours, the loaded wage sets the cost, and the contract price sets the ceiling. Get the production rate wrong by 15% and a 45% margin account becomes a 33% margin account before anyone has touched a mop.
Payroll burden is the number most owners skip. Employer taxes, holiday pay, sick cover, insurance and training typically add 20–30% on top of the raw hourly wage. If you bid using the wage alone, every account in your portfolio is quietly a quarter less profitable than your spreadsheet says.
The last leak is scope creep. Extra rooms, extra frequency, "while you're here" requests — none of them come with extra revenue unless the contract says so. Re-run this calculator every time a client asks for something new and you will always know whether to absorb it or quote it.
Benchmark margins by vertical
| Vertical | Typical gross margin | Why |
|---|---|---|
| Office | 38–48% | High production rates, competitive pricing |
| Medical / dental | 45–58% | Compliance requirements support premium pricing |
| Childcare / nursery | 45–55% | Specification-led, low price shopping |
| Industrial / warehouse | 40–52% | Equipment-heavy but large areas per hour |
| Retail | 40–50% | Route density drives the margin |
| Gym / fitness | 42–52% | Overnight work, tight turnaround windows |
| Post-construction | 45–60% | Project priced, urgency premium |
Frequently asked questions
What is a good profit margin for a commercial cleaning contract?
Most healthy commercial cleaning accounts run 38–55% gross margin before overhead. Offices sit around 38–48%, medical and childcare 45–58%, and post-construction 45–60% because the work is project-priced.
What is the difference between gross and net margin in cleaning?
Gross margin is contract price minus direct costs — cleaner wages, payroll burden, supplies and equipment for that site. Net margin subtracts your share of overhead: management, insurance, vehicles, software and admin.
Why is my cleaning margin lower than expected?
The usual causes are scope creep, under-estimated production rates, unpaid travel time, supply waste, and payroll burden being ignored. Burden alone adds 20–30% on top of the hourly wage.
How much overhead should I allocate per account?
A common approach is to allocate 10–18% of contract revenue to overhead. If your net margin after that is under 15%, the account is priced too low or over-scoped.
Should I ever accept a low-margin contract?
Only when it opens a multi-site relationship or fills a route you already service. A standalone account under 30% gross margin usually costs more in management attention than it returns.