Kitchen Hood Cleaning profit margins

What one-owner hood cleaning businesses report to the IRS, where the money goes on a hood 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%

Kitchen Hood Cleaning profit margin benchmarks

The IRS reports what one-owner businesses filing Schedule C earn, by sector. Kitchen Hood 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 hood cleaning

Hood cleaning is crew labor at night, chemicals and the trailer rig. The first cleaning of a neglected system takes far longer than the ones after it.

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

  • First cleanings priced like regular visits
  • Kitchens on the wrong schedule for their cooking
  • Wastewater handling not priced
  • Long drives between restaurants
  • Fan repairs done free

Ways hood cleaners raise margin: price the first cleaning from a walkthrough; match each kitchen to its cleaning schedule; charge for wastewater handling; group restaurants by area.

Check your hood cleaning prices against the costs

We do not have sourced price ranges for hood cleaning 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 hood cleaning menu: hood, duct and fan cleaning; first cleaning of a neglected system; hood filter exchange; fan hinge kit; access panel; grease containment; exhaust fan belt; service sticker and report; before and after photos.

Overhead comes out of the margin before profit. In hood cleaning 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 hood 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 hood 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 hood cleaners raise their margin?

Price the first cleaning from a walkthrough, match each kitchen to its cleaning schedule and charge for wastewater handling.

What are the biggest costs in hood cleaning?

Hood cleaning is crew labor at night, chemicals and the trailer rig. The first cleaning of a neglected system takes far longer than the ones after it.

Where do hood cleaners lose margin?

First cleanings priced like regular visits, kitchens on the wrong schedule for their cooking and wastewater handling not priced.

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.
Kitchen Hood Cleaning Profit Margins: Benchmarks and a Calculator | Koira