Home Cleaning Service Profitability Case
Business context
A small local home cleaning service with two cleaners offering standard residential cleaning jobs by appointment.
The numbers below are simplified fictional examples used for educational purposes.
The numbers
| Average service price (one cleaning job) | $80 |
| Jobs per week | 25 |
| Supplies and transport (variable cost per job) | $10 |
| Labor cost per job (cleaner wages) | $35 |
| Fixed monthly costs (admin, insurance, marketing) | $1,200 |
Assume about 4.3 weeks per month.
Step-by-step calculation
Monthly jobs ≈ 25 × 4.3 = ~108 jobs
Monthly revenue ≈ 108 × $80 = $8,640
Variable cost per job = $10 + $35 = $45
Total variable costs ≈ 108 × $45 = $4,860
Net profit ≈ $8,640 − $4,860 − $1,200 = $2,580
Net margin ≈ $2,580 / $8,640 ≈ 30%
Break-even point
Contribution margin per job = $80 − $45 = $35
Break-even jobs = $1,200 / $35 ≈ 35 jobs / month
That is about 8–9 jobs per week. Anything above that level starts to generate real profit; anything below means the business is losing money each month.
What this means
The business is comfortably above break-even and earns a solid net margin. The biggest levers are number of jobs per week and labor cost per job. Adding more cleaners increases capacity but also raises labor costs, so growth should be paced to actual demand.
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This case study is for educational and planning purposes only. It is not accounting, tax, legal, investment, or financial advice. Numbers shown are simplified fictional examples.