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Handyman profit margins

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

55%Gross margin, IRS sector
13.2%Net margin incl. owner pay
$143,269Average 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%

Handyman profit margin benchmarks

The IRS reports what one-owner businesses filing Schedule C earn, by sector. Handyman falls under Construction of buildings. For tax year 2023, 795,086 returns reported $113.9 billion in receipts, $51.3 billion in cost of sales and $15.0 billion in net income less deficit (the table gives thousands of dollars):

BenchmarkValue
Gross margin55%
Net margin, owner pay included13.2%
Average receipts per return$143,269
Average net income per return$18,909

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 handyman

Handyman work is labor and small materials, with a lot of drive and setup time per job. Batching small jobs into one visit is how the day pays.

Where handyman margin leaks, and how to win it back

  • No minimum charge
  • Supply runs during the job
  • Small extras done free
  • Jobs that cross the license line and need a sub
  • Hourly rates that ignore drive time

Ways handymen raise margin: set a minimum charge; batch small jobs into one visit; charge for supply runs or stock the truck; know your license line and refer what is above it.

Check your handyman prices against the costs

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

ServiceTypicalRange
Drywall patch, small hole$70$20 to $120 a hole
Drywall patch, large hole$125$50 to $200 a hole
Gutter cleaning, one story$1.10$0.83 to $1.38 a foot
Dryer vent cleaning$126$90 to $163 a job
Holiday lighting install$3.75$2.50 to $5.00 a foot

Work out the margin on each line of your menu, not just the big jobs. The usual handyman menu: tv mount; shelves and pictures; curtain rods and blinds; drywall patch, small hole; drywall patch, large hole; door adjustment and hardware; caulking tubs and sinks; toilet repair; gutter cleaning, one story; dryer vent cleaning; fence and gate repair; holiday lighting install.

Overhead comes out of the margin before profit. In handyman it includes general liability insurance, which Insureon's customers who are handyman businesses pay an average of $81 a month for; commercial auto at $188 a month on the same figures.

Work out your own margin

Put one recent handyman 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 handyman business?

As a benchmark, one-owner businesses in construction of buildings reported a 55% gross margin and a 13.2% net margin to the IRS for 2023, with the owner's pay inside that net figure.

How can handymen raise their margin?

Set a minimum charge, batch small jobs into one visit and charge for supply runs or stock the truck.

What are the biggest costs in handyman?

Handyman work is labor and small materials, with a lot of drive and setup time per job. Batching small jobs into one visit is how the day pays.

Where do handymen lose margin?

No minimum charge, supply runs during the job and small extras done free.

More for handymen

Tools listHandyman tools listWhat handymen buy first, then the pro kit and van stock.Services and pricesHandyman services listThe handyman service menu with typical prices.InsuranceHandyman insuranceWhat handymen pay for each policy, and state rules.SuppliersHandyman suppliersWhere handymen buy, and the pro programs.Koira for handymanHow handymen run on KoiraThe office side of a handyman business, done for you.

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Handyman Profit Margins: Benchmarks and a Calculator | Koira