Decks profit margins

What one-owner deck businesses report to the IRS, where the money goes on a deck 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?
$
$
$
$
%
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%

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):

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 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:

ServiceTypicalRange
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

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 deck 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 deck builders raise their margin?

Lock in lumber prices with your supplier, price railings and stairs on their own and charge for tear-out separately.

What are the biggest costs 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 do deck builders lose margin?

Lumber prices that rise after the quote, footings in rocky or wet ground and permit and inspection delays.

We know what works. Leave it to Koira.

☼⚙
Standard⚡ Turbo
● Koira did it● You by hand
Today $9,300$8,100 / $1,200
This week $25,050$18,570 / $6,480
This month $69,300$46,150 / $23,150
Money, just now
Reminded Sean Love, $1,850. Polite reminder with the pay link.
Bids, 9:44 am
Nudged Dana on the kitchen bid. Day 3 follow up. She opened it at 9:12.
Convos, 9:41 am
Texted back a missed call. Walk through booked Thu 10:00.
Decks Profit Margins: Benchmarks and a Calculator | Koira