Chimney profit margins

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

68.8%Gross margin, IRS sector
15.7%Net margin incl. owner pay
$102,220Average 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
Free. Your numbers become an estimate you can send from your phone.

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%

Chimney profit margin benchmarks

The IRS reports what one-owner businesses filing Schedule C earn, by sector. Chimney falls under Specialty trade contractors. For tax year 2023, 2,521,516 returns reported $257.8 billion in receipts, $80.4 billion in cost of sales and $40.5 billion in net income less deficit (the table gives thousands of dollars):

BenchmarkValue
Gross margin68.8%
Net margin, owner pay included15.7%
Average receipts per return$102,220
Average net income per return$16,054

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 chimney

Chimney work is labor for sweeps and inspections, plus materials and masonry labor for repairs.

Where chimney margin leaks, and how to win it back

  • Inspections done free with no sale
  • Masonry repairs underestimated
  • Roof access time
  • Callbacks
  • Drive time

Ways chimney sweeps raise margin: sell the sweep with the inspection; quote repairs from photos the same day; sell caps and dampers on the visit; book yearly reminders.

Check your chimney prices against the costs

We do not have sourced price ranges for chimney services yet, so start from your own costs with the labor rate calculator and list your prices on the services list.

Work out the margin on each line of your menu, not just the big jobs. The usual chimney menu: chimney sweep; chimney inspection with camera; dryer vent cleaning; chimney cap install; crown repair; damper replacement; flashing repair; tuckpointing; liner install; waterproofing.

Overhead comes out of the margin before profit. In chimney 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 chimney 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 chimney business?

As a benchmark, one-owner businesses in specialty trade contractors reported a 68.8% gross margin and a 15.7% net margin to the IRS for 2023, with the owner's pay inside that net figure.

How can chimney sweeps raise their margin?

Sell the sweep with the inspection, quote repairs from photos the same day and sell caps and dampers on the visit.

What are the biggest costs in chimney?

Chimney work is labor for sweeps and inspections, plus materials and masonry labor for repairs.

Where do chimney sweeps lose margin?

Inspections done free with no sale, masonry repairs underestimated and roof access time.

We know what works. Leave it to Koira.

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Chimney Profit Margins: Benchmarks and a Calculator | Koira