Decks profit margin benchmarks
The IRS reports what one-owner businesses filing Schedule C earn, by sector. Decks 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):
| Benchmark | Value |
|---|---|
| Gross margin | 68.8% |
| Net margin, owner pay included | 15.7% |
| 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 deck
Decks are material heavy, especially composite, with framing labor and footings on top. Permits, inspections and lumber price swings move the margin.
Where deck margin leaks, and how to win it back
- Lumber prices that rise after the quote
- Footings in rocky or wet ground
- Permit and inspection delays
- Railings and stairs priced too low
- Tear-out of the old deck left off
Ways deck builders raise margin: lock in lumber prices with your supplier; price railings and stairs on their own; charge for tear-out separately; sell yearly wash and seal visits.
Check your deck prices against the costs
The typical national prices from our sourced calculators are a check on whether your prices leave room for margin:
| Service | Typical | Range |
|---|---|---|
| Build labor | $25 | $15.00 to $35 a sq ft |
| Decking, pressure-treated | $4.50 | $3.00 to $6.00 a sq ft |
| Decking, composite | $11.75 | $7.00 to $16.50 a sq ft |
| Raised deck framing | $10.50 | $9.00 to $12.00 a sq ft |
| Permit | $331 | $163 to $500 a job |
| Wood railing, installed | $45 | $35 to $55 a foot |
Work out the margin on each line of your menu, not just the big jobs. The usual deck menu: build labor; decking, pressure-treated; decking, composite; raised deck framing; permit; wood railing, installed; composite railing, installed; stairs; pergola, 12 by 12 ft; tear out an old deck; deck wash; stain and seal; board and railing repair.
Overhead comes out of the margin before profit. In deck it includes general liability insurance, which Insureon's customers who are carpenters pay an average of $94 a month for; commercial auto at $239 a month on the same figures.
Work out your own margin
Put one recent deck 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
- IRS Statistics of Income: Nonfarm sole proprietorships, Table 2, income statements by industrial sector, tax year 2023, checked October 9, 2026
- IRS: SOI tax stats, nonfarm sole proprietorship statistics, checked October 9, 2026
- Insureon: Insurance cost for carpenters, checked October 9, 2026
- Fixr, cost to build a deck, checked October 8, 2026
- HomeAdvisor, cost to build a deck, checked October 8, 2026
- Modernize, deck cost, checked October 8, 2026
- Bob Vila, how much does it cost to build a deck, checked October 8, 2026
- BLS Occupational Employment and Wage Statistics, May 2025 (state and national files), checked October 8, 2026
- US Census Bureau, 2020 ZIP Code Tabulation Area to county relationship file, checked October 8, 2026
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.