Start with one fully costed job
Suppose a cleaning visit has an estimated cost of $120 and you quote $160. The amount left after the costs you entered is $40. That is a 25% margin because $40 is one quarter of the $160 selling price. It is also a 33.33% markup because $40 is one third of the $120 cost.
Both percentages describe the same job. They answer different questions. These figures are an arithmetic example, not a suggested cleaning rate or an industry margin benchmark. Payment processing fees are set to zero in this example.
| Measure | Calculation | Result |
|---|---|---|
| Modeled profit | $160 price − $120 cost | $40 |
| Margin | $40 ÷ $160 price | 25% |
| Markup | $40 ÷ $120 cost | 33.33% |
Include the cost of doing the work yourself
A sole owner can receive the whole customer payment and still earn very little after their time is counted. Give your own cleaning hours a labor value when planning a quote. You could use the amount you want to earn for that work or the cost of paying someone to replace you; keep that choice consistent when comparing jobs.
For the $120 example, assume three person-hours at $25, a $15 allowance for additional labor costs, $18 for supplies and travel, and $12 of allocated overhead. The $40 remainder is separate from the $75 already allocated to cleaning labor. Use your actual costs and do not count the same expense twice.
Calculate a price from your target margin
To target a margin, divide cost by the portion of the selling price available to cover it. At a 25% target margin, costs must occupy 75% of the price. A $120 cost therefore requires a $160 price.
Adding 25% to $120 gives $150 instead. The resulting $30 remainder is only 20% of the selling price. That $10 difference repeats on every comparable visit, so a small formula choice can matter across a recurring schedule.
Check what happens when the visit runs long
Keep the $160 quote, but let the job require one extra person-hour. At $25 plus a 20% additional labor allowance, that adds $30. Modeled cost rises to $150, leaving $10: a 6.25% margin. Your original target did not protect the job from a time estimate that was too low.
Try an expected case and a slower case before accepting the price. For a recurring client, compare actual hours and supplies with your estimate after the first few visits, then decide whether the scope, process or future price needs adjustment.
Use the result with a clear cost boundary
The calculator reports profit after the costs you include. If marketing, insurance, equipment replacement or administration are missing, they still need to be paid from the remainder. Allocate a reasonable share to overhead and review that allowance as your workload changes.
Keep applicable customer taxes and owner income taxes outside this worked example. Open the quote calculator, enter your own costs, and compare the price produced by your chosen margin with the price you currently charge.