Service Business Academy

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Remote Service Business Guide
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Profit Margin Calculator

Enter your job details below. See exactly what you’re keeping — and whether your pricing is actually working for you.

Enter Your Job Details
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Profit Margin
Enter your numbers and click Calculate
Job Price$—
Total Costs$—
Net Profit$—
Hourly (est. 2hr job)$—

What’s a good profit margin for home service businesses?

Profit margin is the percentage of your job price that you actually keep after all costs. Most contractors only track revenue — which is why so many stay broke despite being busy. A 10% margin on a $300 job means you kept $30. On a 40-hour week that’s not a business, that’s a very stressful job.

Home service businesses typically target 20–35% net profit margin after labor, materials, overhead, and taxes. If you’re running below 15%, your pricing needs attention. If you’re regularly hitting 35%+, you have real pricing power — scale it.

Under 15%
Pricing problem — costs are eating your profit. Raise prices or cut costs.
15% – 25%
Acceptable but tight. One slow month or bad job and you’re in trouble.
25%+
Healthy margin. Room to grow, invest, and absorb slow periods.

Don’t forget overhead. Most new contractors calculate profit based only on labor and materials — and forget to account for vehicle costs, fuel, insurance, software subscriptions, and their own unpaid admin time. Use the overhead field above to distribute those fixed costs across your jobs. See our complete launch guide for how to calculate overhead per job.

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