How to calculate cleaning route profit
A profitable quote can become an unprofitable day when travel gaps and small job costs are ignored. Route-level planning combines every stop into one operating picture.
Count travel as working time
Travel between jobs consumes capacity even when it is not itemized on the invoice. Enter both on-site and travel minutes, then apply a realistic labor cost to the complete paid working day.
Use labor cost, not the customer rate
Labor cost represents wages or the value of owner cleaning time. The client price has to cover that cost plus supplies, travel, overhead and profit. Treating owner labor as free creates misleading profit.
Allocate daily overhead
Add the portion of insurance, phone, software, equipment replacement and administrative cost that the planned workday needs to recover. A simple starting point is monthly overhead divided by realistic working days.
Review the route, not only each job
A lower-priced nearby job can strengthen the day by filling a gap. A higher-priced distant job can weaken it through travel and lost capacity. Compare total profit, margin and revenue per total hour.
Frequently asked questions
Should travel time be charged directly to a client?
Not necessarily, but it must be recovered somewhere in the price structure. Model it as labor time even if the client sees one flat price.
What should be included in daily overhead?
Allocate non-job-specific costs such as insurance, phone service, admin tools, equipment replacement and marketing.
Is revenue per hour the same as profit per hour?
No. Revenue per hour is sales divided by total time. Profit per hour would also subtract labor, supplies, travel and overhead.