How do your profit margins really compare?
Enter five numbers from last year. In about 60 seconds you'll see your gross and net margin next to real benchmarks for your industry, and what the gap is costing you every year.
Get your full report: what's causing the gap and how to close it
Enter your name and email and your free personalized breakdown opens on the next page:
- Whether your gap comes from pricing, job mix, overhead, or owner pay
- Your real take-home as an owner compared with a well-run company your size
- The specific overhead and margin targets to hit next year
- The industry benchmarks behind every number
The benchmarks behind the checkup
Most profit margin numbers you see online are gross margins, which makes everyone feel better than they should. This checkup compares your net margin, after overhead and a salary for you, against the ranges we see across 315+ client businesses and published industry studies.
| Industry | Average net margin | Well-run target | Best in class |
|---|---|---|---|
| Roofing | 5% to 8% | 8% to 12% | 12% to 15%+ |
| HVAC | 5% to 8% | 10% to 15% | 17% to 25% |
| Plumbing | 5% to 8% | 15% | 18% to 25% |
| Electrical | 5% to 8% | 15% | 18% to 22% |
| Dental practice | 62% to 68% overhead | Under 60% overhead | Around 55% overhead |
Sources include the ACCA Financial Benchmarking Study, NRCA, and ADA data, plus our own client work. Net margin here means profit after all overhead and a salary for the owner. If you pay yourself well below market, your margin will look better than it really is.
Profit margin questions
What's the difference between gross and net profit margin?
Gross margin is what's left after direct job costs like field labor, materials, and subcontractors. Net margin is what's left after everything else too: office staff, rent, trucks, insurance, marketing, and a salary for you. A company can run a 45% gross margin and still net only 3% if overhead is too high.
What is a good net profit margin for a contractor?
Most home service and construction companies net 5% to 8%. Well-run companies reach 10% to 15%, and the best HVAC, plumbing, and electrical shops hit 18% to 25%. Roofing runs lower, with 8% to 12% considered good.
Should I include my own pay in overhead?
No. Enter it separately. The checkup subtracts it before calculating net margin, the same way the industry benchmarks do, so you're comparing apples to apples. Your total take-home is your pay plus whatever profit the business keeps.
Where do I find these numbers?
Your profit and loss statement for the last 12 months has all of them. Revenue is at the top, direct costs are usually labeled cost of goods sold or cost of sales, and overhead is your operating expenses. Rough numbers are fine for a first look.
Is my information saved?
The numbers you type stay in your own browser and are never sent to us. If you unlock the full report, we only receive your name and email.
Want a CFO to walk through your numbers?
Book a free 30-minute call. We'll look at your margins together and show you exactly where the gap is coming from.
Book a free intro callBuilding better Business Owners through personalized Financial Coaching.