Carpet Cleaning profit margins

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

84.3%Gross margin, IRS sector
21.2%Net margin incl. owner pay
$36,687Average 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%

Carpet Cleaning profit margin benchmarks

The IRS reports what one-owner businesses filing Schedule C earn, by sector. Carpet Cleaning falls under Administrative and support services. For tax year 2023, 3,118,914 returns reported $114.4 billion in receipts, $17.9 billion in cost of sales and $24.2 billion in net income less deficit (the table gives thousands of dollars):

BenchmarkValue
Gross margin84.3%
Net margin, owner pay included21.2%
Average receipts per return$36,687
Average net income per return$7,769

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 carpet cleaning

Carpet cleaning is labor, chemicals and the truckmount or portable machine's fuel and wear.

Where carpet cleaning margin leaks, and how to win it back

  • No job minimum
  • Furniture moving free
  • Heavy soil priced like light
  • Drive time
  • Equipment repairs

Ways carpet cleaners raise margin: set a job minimum; charge for furniture moving; price heavy soil higher; sell protector and stairs.

Check your carpet cleaning prices against the costs

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

ServiceTypicalRange
Hot water extraction$0.27$0.18 to $0.36 a sq ft
Low moisture cleaning$0.30$0.19 to $0.40 a sq ft
Stairs$3.50$2.00 to $5.00 a step
Job minimum$92$75 to $109 a job
Pet odor treatment$0.18$0.10 to $0.30 a sq ft
Carpet protector$7.50$5.00 to $10.00 a room

Work out the margin on each line of your menu, not just the big jobs. The usual carpet cleaning menu: hot water extraction; low moisture cleaning; stairs; job minimum; pet odor treatment; carpet protector; furniture moving; upholstery cleaning; tile and grout cleaning; area rugs.

Overhead comes out of the margin before profit. In carpet cleaning it includes general liability insurance, which Insureon's customers who are carpet and upholstery cleaners pay an average of $73 a month for; commercial auto at $214 a month on the same figures.

Work out your own margin

Put one recent carpet cleaning 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 a carpet cleaning business?

As a benchmark, one-owner businesses in administrative and support services reported a 84.3% gross margin and a 21.2% net margin to the IRS for 2023, with the owner's pay inside that net figure.

How can carpet cleaners raise their margin?

Set a job minimum, charge for furniture moving and price heavy soil higher.

What are the biggest costs in carpet cleaning?

Carpet cleaning is labor, chemicals and the truckmount or portable machine's fuel and wear.

Where do carpet cleaners lose margin?

No job minimum, furniture moving free and heavy soil priced like light.

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Carpet Cleaning Profit Margins: Benchmarks and a Calculator | Koira