Cleaning Business Markup vs Margin Calculator
At 80 cleans per month, the markup vs margin confusion costs you thousands. See the real math.
🔄 I Know My...
Enter a markup or margin and we'll calculate everything else.
💰 Job Cost
Your total cost on this cleaning job (labor + materials + overhead). Adjust to see real dollar impact.
Enter jobs per month to see the annual impact of confusing markup with margin.
⚡ The Real Difference
This is what happens when you confuse the two. Same percentage, very different results.
Quick Reference: Common Conversions
| Markup | Margin | $120 Cost → Price |
|---|---|---|
| 20% | 16.7% | $0 |
| 25% | 20.0% | $0 |
| 33% | 25.0% | $0 |
| 43% | 30.0% | $0 |
| 50% | 33.3% | $0 |
| 67% | 40.0% | $0 |
| 100% | 50.0% | $0 |
| 150% | 60.0% | $0 |
Markup → Margin Conversion
$0
Your sell price
Adjust the inputs on the left to see your numbers update in real time.
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Markup vs Margin for Cleaning Contractors
Cleaning businesses run on tight per job economics. When you clean 80+ homes or offices per month, a $15 pricing error per clean is $1,200/month in lost revenue. That is $14,400 per year.
The most common source of that error: confusing markup and margin. This calculator shows you both numbers for any job cost so you can price with clarity.
The Most Common Mistake
A cleaning company charges $180 for a residential clean (50% markup on $120 cost). The owner thinks she is making 50% profit. Actual margin: 33.3%. She keeps $60 per clean. After supplies, drive time, and marketing costs ($20 per clean), her net is $40. At 80 cleans per month, she makes $3,200. She thought she was making $4,800. That $1,600 gap is the difference between growing and staying stuck.
Cleaning Example
Standard residential clean: $120 cost (2 cleaners for 2.5 hours, supplies, drive time). At 50% markup you charge $180 and keep $60 (33.3% margin). At 50% margin you charge $240 and keep $120. Per clean difference: $60. At 80 cleans per month: $4,800 in additional monthly revenue. Yes, $240 is more than $180. But $240 for a professional 2.5 hour clean by a 2 person crew is completely reasonable in most markets.
What We Recommend
Price cleaning jobs using margin. Target 40% to 50% on residential and 35% to 45% on commercial. Recurring clients should be at the higher end because the work is predictable and you have no acquisition cost after the first clean. If your market is competitive, compete on quality and reliability, not on price. Dropping your margin from 45% to 35% to win a client costs you more than not having that client.
Frequently Asked Questions
What markup should cleaning companies use?
Target 40% to 50% margin on residential cleans and 35% to 45% on commercial accounts. In markup terms, that is 67% to 100% on residential and 54% to 82% on commercial. At 45% margin on a $120 clean, charge $218. Recurring clients should be at the higher end because there is no acquisition cost after the first clean.
What is a good profit margin for a cleaning company?
A good profit margin is 40% to 50% on residential cleaning and 35% to 45% on commercial. Recurring residential clients should target 45% or higher. At 45% margin on 80 cleans per month at $218 each, you keep $7,920 in gross profit. If your margins are below 35%, you are either underpricing or your labor costs need optimization.
What is the difference between markup and margin for cleaning businesses?
Markup is the percentage added to your cost. Margin is the percentage of your price that is profit. A 50% markup on a $120 cleaning job means you charge $180 and keep $60. Your margin is 33.3%, not 50%. At 80 cleans per month, that misunderstanding costs you $3,040 in monthly revenue compared to pricing at 50% margin.
How do you calculate profit margin on a cleaning job?
Divide your profit by the price you charge. If a residential clean costs $120 and you charge $180, your profit is $60. Margin = ($60 / $180) x 100 = 33.3%. Do not divide by cost ($60 / $120 = 50%). That is markup, not margin, and it overstates your profitability.
How should cleaning companies price residential services?
Calculate your fully loaded cost per clean (labor, supplies, drive time, insurance, overhead). Divide by (1 minus your target margin). If your cost is $120 and you want 45% margin, charge $120 / 0.55 = $218. Do not add 45% to $120 ($174). That is only 31% margin and leaves $44 per clean on the table.
Knowing Your Numbers Is Step One
This calculator shows you one piece. The Growth Report shows you the full picture: where you're leaking revenue, what to fix first, and how contractors like you are growing past the ceiling.