Appliance Repair profit margins

What one-owner appliance repair businesses report to the IRS, where the money goes on a appliance repair job, and a calculator to check your own margin.

69.3%Gross margin, IRS sector
13.2%Net margin incl. owner pay
$55,765Average receipts per return
What do you want to work out?
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Leave at 15% if you do not know it yet. The business mode works it out.
Gross margin
35.7%
$1,250 over job costs
55.6%Markup
$725Net profit
20.7%Net margin
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How we got this

  1. Job cost$1,200 materials + $900 labor + $150 other = $2,250
  2. Gross profit$3,500 − $2,250 = $1,250
  3. Gross margin$1,250 ÷ $3,500 price = 35.7%
  4. Markup$1,250 ÷ $2,250 cost = 55.6%
  5. Overhead share15% of $3,500 = $525
  6. Net profit$1,250 − $525 = $725 (20.7%)
MarkupGives a margin of
25%20%
33%24.8%
43%30.1%
50%33.3%
67%40.1%
100%50%

Appliance Repair profit margin benchmarks

The IRS reports what one-owner businesses filing Schedule C earn, by sector. Appliance Repair falls under Miscellaneous repairs. For tax year 2023, 438,242 returns reported $24.4 billion in receipts, $7.5 billion in cost of sales and $3.2 billion in net income less deficit (the table gives thousands of dollars):

BenchmarkValue
Gross margin69.3%
Net margin, owner pay included13.2%
Average receipts per return$55,765
Average net income per return$7,372

The owner's own draw is not an expense on a Schedule C, so that net margin is mostly the owner's wage, not profit on top of it.

Where the money goes in appliance repair

Appliance repair is labor and parts, with the diagnostic visit as the anchor. Parts lead times can mean two trips.

Where appliance repair margin leaks, and how to win it back

  • Diagnostic fee too low
  • Second trips for parts
  • Parts sold at cost
  • Repairs that turn into replacements
  • Warranty callbacks

Ways appliance repair techs raise margin: charge a diagnostic fee credited to the repair; order parts the same day; mark up parts; offer a repair or replace estimate on older units.

Check your appliance repair prices against the costs

The typical national prices from our sourced calculators are a check on whether your prices leave room for margin:

ServiceTypicalRange
Dryer vent cleaning$126$90 to $163 a job

Work out the margin on each line of your menu, not just the big jobs. The usual appliance repair menu: washer repair; dryer repair; dryer vent cleaning; refrigerator repair; dishwasher repair; oven and range repair; microwave repair; diagnostic fee; install new appliance; ice maker repair.

Overhead comes out of the margin before profit. In appliance repair it includes general liability insurance, which Insureon's customers who are contractors as a group pay an average of $83 a month for; commercial auto at $270 a month on the same figures.

Work out your own margin

Put one recent appliance repair job into the calculator above, or switch it to "My margin for the year" to set your year next to the IRS benchmark. A 50% markup is a 33% margin; the markup calculator shows the rest.

Sources

Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.

FAQ

What is a good profit margin for an appliance repair business?

As a benchmark, one-owner businesses in miscellaneous repairs reported a 69.3% gross margin and a 13.2% net margin to the IRS for 2023, with the owner's pay inside that net figure.

How can appliance repair techs raise their margin?

Charge a diagnostic fee credited to the repair, order parts the same day and mark up parts.

What are the biggest costs in appliance repair?

Appliance repair is labor and parts, with the diagnostic visit as the anchor. Parts lead times can mean two trips.

Where do appliance repair techs lose margin?

Diagnostic fee too low, second trips for parts and parts sold at cost.

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Appliance Repair Profit Margins: Benchmarks and a Calculator | Koira