How to Price Cleaning Jobs: a Formula That Protects Your Profit
"Busy but broke" is the standard failure mode of new cleaning businesses: a full calendar of jobs priced so low that nothing is left after costs. The fix is a formula.
The formula
Price = (labor + supplies) รท (1 โ overhead% โ profit%)
- Labor: loaded hourly cost (wage + payroll taxes/insurance) ร people ร hours including round-trip drive time.
- Supplies: $5โ10 per residential job.
- Overhead: insurance, marketing, software, admin โ typically 10โ20% of price.
- Profit: the business should keep 15โ25% after everything. This is not your wage โ it's what makes the business worth owning.
Worked example
Solo cleaner paying themselves $22/hr loaded, 3-hour standard clean, 30 minutes driving, $6 supplies, 15% overhead, 20% margin:
- Labor: $22 ร 3.5h = $77
- Direct cost: $77 + $6 = $83
- Price: $83 รท (1 โ 0.15 โ 0.20) = $83 รท 0.65 = $128 โ quote $130
That's an effective $37/hr on-site โ right in the healthy range for solo residential work. Quote $95 "to win the job" and the business earns almost nothing for the risk.
Adjustments
- First-time clean: 1.5ร the recurring price (there's always more dirt than the walkthrough showed).
- Deep clean: 1.5โ2ร hours. Move-out: 2โ2.5ร.
- Recurring discounts: weekly โ15%, bi-weekly โ10%, monthly โ5%. Loyalty is worth paying for; desperation isn't.
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