The Level Index
CleaningCleaning labor cost: Level's 45-55% diagnostic range. Where does yours land?
Labor cost, contract retention, route density and pricing references for commercial, residential and specialty cleaning. The 45-55% labor band is a Level planning range, not a measured industry median or engagement distribution.
Reviewed October 7, 2026. Published figures retain their own observation periods and populations. Retained source-attributed inputs with no exact capture are explicitly unverified; planning references are not a measured Level industry cohort.
$110B
Market size
U.S. janitorial services revenue (2025) (retained historical reference, exact source not reverified here)
1.25M+
Establishments
Cleaning businesses in the U.S. (retained historical reference, exact source not reverified here)
2.45M
Employment
Janitors & building cleaners (BLS) (retained historical reference, exact source not reverified here); different or unverified BLS vintage and occupation scope, not the verified May 2023 SOC 37-2011 figures
$17/hr
Median wage
Median cleaner wage (BLS 2024) (retained historical reference, exact source not reverified here); different or unverified BLS vintage and occupation scope, not the verified May 2023 SOC 37-2011 figures
Direct answer
What percentage of revenue should a cleaning company spend on labor?
Level uses 45% to 55% of revenue as a cleaning labor-cost diagnostic range. It is a planning range, not a measured percentile or universal target.
- Definition
- Total cleaning labor cost divided by revenue for the same period. Include payroll taxes, workers compensation, and benefits when available. Do not confuse this measure with labor as a percentage of total job cost.
- Evidence and sample
- Practitioner planning range, not an observed cohort. No measured engagement sample supplied.
- Source and limitation
- Level practitioner planning judgment, no counted engagement sample. Service mix, geography, overtime, subcontracting, and the treatment of payroll burden can materially change the ratio.
Check your own numbers
The Level 45-55% diagnostic range is the starting point. The real question is where your number actually lands, and why.
Knowing the range does not fix your margin. Send us your labor cost, revenue, and account list. We will show you where you sit, which accounts are dragging you, and the first fix. Your numbers stay private, we never publish or share client data.
In the free audit, we check:
- •labor cost by account, building, route, and supervisor pod
- •cleaner hours vs. bid hours, including overtime and rework
- •payroll timing against customer payment terms and DSO
We use this to prepare your audit before the call. Your numbers stay private.
About the data and its source basisProvenance and method for the cleaning figures on this page.
About the Data
Named source observations and separately labeled planning references answer different questions. Each verified capture retains its population and date. Previously attributed inputs without an exact retained capture are marked unverified, and do not establish a measured Level industry cohort.
Methodology
Read the evidence class and population beside each metric. A report attribution alone does not verify a value or percentile. Mixed-source table bands and planning inputs are not common quartiles; published percentiles apply only to the captured source population.
The Level CLEAR Framework
Five pillars of cleaning financial health
Every metric in the Level Index maps to one of five pillars. Together they give you a complete picture of where money is made, lost, stuck, or at risk.
Review invoice issue dates, dispute reasons, contract terms and actual collection timing. Model payroll cash separately from accrual margin.
Track paid hours, productive hours, travel, callbacks and site requirements. National wage percentiles are employee wages, not loaded crew costs.
Calculate account contribution with measured service time, supplies and other direct costs. Separate gross margin from overhead and owner compensation.
Track account loss by both customer count and revenue. Compare acquired work with retained work rather than assuming a uniform churn effect.
Use actual insurance quotes, class codes, experience modifiers, safety records and customer concentration to model risk.
Owner decision
An account can meet a price benchmark and still lose money on service time.
Build account contribution from actual visit count, paid crew hours, travel, supplies and direct cost. The retained price and margin bands are planning inputs with explicit limits, not a measured Level cleaning cohort.
Reconcile a representative week before repricing or promising labor savings.
Source: Level operating method; BLS May 2023 wage context
Compare early-payment cost with your actual cash alternatives.
Days Sales Outstanding (DSO)
Source / sample: Retained context: ABM FY 2024 10-K + industry working-capital guidance. Exact report population/positions are not certified unless a bar is explicitly labeled published below.
The ABM-attributed 60-day reference is a historical public-company context value, not a measured SMB median; other displayed values are planning cases. Under an assumed 2/10 net 30 offer and 20-day acceleration, 2/98 x 365/20 is 37.2% simple annualization, before other effects. Compare actual borrowing cost, collection risk and customer terms.
Source basis
Definition: Eligible billed receivables divided by matching credit revenue times days in the period. Specify average versus year-end receivables and exclude/disclose unbilled work. The ABM-attributed proxy differs from actual customer collection timing.
Source: Previously attributed source context (exact values not reverified): ABM FY 2024 10-K, industry working-capital research
National employee wages are different from your fully loaded crew cost.
Janitor & Cleaner Hourly Wage (BLS OEWS)
Source / sample: BLS May 2023 SOC 37-2011, national employee estimates
BLS May 2023 SOC 37-2011 national employee-wage percentiles match the five displayed values. They do not establish a 2024 metro wage floor or current quote. Treat 25-35% added burden relative to base wages as a separate planning assumption only; use actual payroll taxes, insurance and benefits for your employer cost.
Source basis
Definition: BLS May 2023 national hourly employee wages for SOC 37-2011 Janitors and Cleaners, Except Maids and Housekeeping Cleaners. Self-employed workers are excluded; wages are not loaded contract costs or current metro quotes.
Labor-share references need the same cost denominator.
Labor Share of Job Cost (Previously Attributed References)
Source / sample: Retained context: BSCAI production rate guidance + facility-side benchmarks. Exact report population/positions are not certified unless a bar is explicitly labeled published below.
The retained 50-90% labor-share inputs have mixed janitorial/facility accounting scopes and unverified exact report values. A facility cost share is not a cleaner's payroll-to-revenue share. Measure service hours, travel, wages, supplies and equipment on your own account before choosing a workload.
Source basis
Definition: Defined direct labor cost divided by total defined direct job cost for the same account and period. Specify burden, supplies, travel and equipment scope; these retained inputs are not a verified industry distribution.
Source: Previously attributed source context (exact values not reverified): BSCAI + FMLink benchmarking
Price the service minutes as well as the square footage.
Pricing $/sq ft/month (planning cases)
Source / sample: Independent Level pricing scenarios
The displayed contract-price inputs are Level planning cases with no retained measured engagement cohort. In a 50,000 sqft, 20 visit, $25 loaded-hour illustration, $0.13/sqft/month gives $6,500 revenue. At 5,000 sqft/hour labor is $5,000; at 2,500 it is $10,000. The $1,500 or -$3,500 labor-only result excludes supplies and overhead. Validate site scope, frequency and actual time.
Source basis
Definition: Assumed monthly contract revenue divided by serviced square feet. Visits per month, scope, actual service minutes, travel and supplies must be stated; this is not a per-visit quote or measured market price.
Source: Level planning contract-price inputs; measured engagement population not supplied
Account-loss percentages and lost revenue answer different questions.
Share of Respondent Firms by Annual Account-Loss Bucket
Source / sample: Retained context: BSCAI 2024 Market Study, % of respondent firms. Exact report population/positions are not certified unless a bar is explicitly labeled published below.
The retained BSCAI-attributed response distribution is not independently reverified here. A count-based loss band does not establish lost revenue or profit. Reconcile opening eligible accounts, exits, acquired customers and the revenue of lost accounts before changing acquisition or retention work.
Source basis
Definition: Plot value = respondent firms in the stated account-loss bucket divided by responding firms. Level recommends defining annual account loss as lost eligible opening accounts divided by eligible opening accounts; the historically attributed survey's own denominator is not reverified.
Source: Previously attributed source context (exact values not reverified): BSCAI 2024 Industry Market Study
Model workers-comp cost with your actual class and insurance terms.
Workers Comp Cost as % of Payroll (Janitorial, NCCI Class 9014)
Source / sample: Independent Level workers-comp planning scenarios; no source observation or sample
The 4/7/12% chart inputs are planning cases, not NCCI percentiles. Review class code, state, payroll, experience modification, loss history and insurer quote. A claim's timing and treatment can affect insurance terms; no universal premium reduction or three-year compounding effect is established here.
Source basis
Definition: Applicable workers-compensation premium divided by covered payroll for the same policy period. State class codes, experience modification, exclusions and actual insurer terms; the displayed percentages are independent planning inputs.
Source: Level premium-to-payroll planning sensitivities; state and insurer terms require verification
Model and segment planning references
CleaningIndependent retained inputs for operating scenarios. They are not measured common-cohort medians or expected outcomes.
Office Janitorial
Planning reference: Pricing range (illustrative)
$0.09-$0.17 / sq ft / mo
Retained planning input; exact source population unverified
Not a measured Level sample
Medical / Healthcare
Planning reference: Pricing range (illustrative)
$0.14-$0.29 / sq ft / mo
Retained planning input; exact source population unverified
Not a measured Level sample
Industrial / Manufacturing
Planning reference: Pricing range (illustrative)
$0.08-$0.20 / sq ft / mo
Retained planning input; exact source population unverified
Not a measured Level sample
Warehouse / Distribution
Planning reference: Pricing range
$0.07-$0.15 / sq ft / mo
Retained planning input; exact source population unverified
Not a measured Level sample
Residential / Maids
Planning reference: reference cleaner wage
$16.66/hr (historical attribution unverified)
Retained planning input; exact source population unverified
Not a measured Level sample
Specialty / Post-Construction
Planning reference: Relative-price planning input
1.5-3× standard rates
Retained planning input; exact source population unverified
Not a measured Level sample
Advanced Cleaning Metrics
Sub-segment breakdowns, advanced operational metrics, and clearly labeled reference ranges for commercial janitorial, residential, and specialty cleaning.
Reference A, center and reference C retain the existing comparison positions. They are not common measured percentiles, ascending numerical bins or proven quality ranks. Each source observation and planning input retains its own definition and population.
Expand complete Cleaning reference table (10 metrics with source & sample notes)Includes lower, center, and upper reference points alongside evidence classification and sample disclosures.
| Metric | Reference A | Center reference | Reference C | Note |
|---|---|---|---|---|
| Gross Margin (Office Janitorial) | < 25% | 30-40% | > 45% | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Independent Level planning bands, not observed SMB quartiles. Public IFM companies have different direct-cost and service mixes; overhead below gross profit does not explain gross-margin differences. |
| Gross Margin (Specialty / Healthcare) | < 30% | 40-50% | > 55% | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Independent Level planning bands, not observed SMB quartiles. Public IFM companies have different direct-cost and service mixes; overhead below gross profit does not explain gross-margin differences. |
| EBITDA Margin | < 4% | 8-12% | > 18% | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Independent EBITDA-margin planning bands, not certified ABM or small-business percentiles. Reconcile the service population, accounting adjustments and reporting period before a public-company comparison. |
| Hourly Turnover | > 300% | ~200% | < 100% | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Independent workforce-turnover planning bands with exact historical attribution unverified. Measure exits against average eligible headcount; do not confuse staff turnover with account loss. |
| Account Loss Rate (annual) | > 20% | <10% | <5% | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Independent account-loss planning bands with the previously attributed BSCAI respondent statistic not reverified. Specify account count or revenue loss and the same annual period. |
| Supervisor:Cleaner Ratio | 1:30+ | 1:10 to 1:20 | 1:8 to 1:12 | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Independent supervision planning ratios. Check actual contract coverage, locations, shifts and supervisor responsibilities; these are not measured workforce quartiles. |
| DSO (commercial) | > 75 days | 45-60 days | < 35 days | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Independent commercial collection-time planning bands, not an ABM-certified small-business distribution. Match receivable balances, billed revenue and periods; forecast actual receipts and obligations. |
| Workers Comp Cost % of Payroll | > 9% | 4-6% | < 4% | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Retained context or planning input, exact source not independently reverified here. Retained cost references, not a verified NCCI average or state rate schedule. Class code, insurer, payroll, experience modification and policy year must match your actual quote; the chart and table are planning scenarios, not one cohort. |
| Insurance Total % of Revenue | > 4% | 1-3% | < 1.5% | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Retained context or planning input, exact source not independently reverified here. GL + WC + bond stack. The 1-3% band is a planning reference without a retained 200-quote cohort. Reconcile actual policy premiums and exposures; fleets and state rules can change scope. |
| Customer Concentration (top 5 % revenue) | > 60% | 30-40% | < 20% | Evidence: Retained planning or previously attributed reference; exact measurement unverified Sample: No measured common population; planning references differ Independent concentration planning bands without a measured Level cohort. Reconcile top-five revenue and contribution separately and model actual contract expiry or loss. |
Level operating expertise
Your bid margin is only the first layer of account profit.
Level's operating view: a cleaning contract earns its margin only after the work it consumes is assigned to the account. Cleaner hours are the starting point. Supervisor attention, paid travel, replacement coverage, rework and absorbed supplies can change which contracts are worth growing.
This method reflects Level's operating expertise. The example below uses independently chosen fictional inputs, not a client account, measured outcome or industry peer average.
Independent monthly example
35% quoted margin becomes 22.7% account contribution.
The difference is $1,230 of account costs missing from the bid.
| Margin layer | Amount | Calculation |
|---|---|---|
| Monthly contract revenue | $10,000 | Independent fictional contract value |
| Direct costs included in the bid | $6,500 | Costs already counted |
| Quoted profit | $3,500 | 35% of revenue |
| Supervisor attention | $480 | 12 hours x $40 loaded per hour |
| Paid travel between sites | $400 | 16 hours x $25 loaded per hour |
| Replacement coverage and rework | $200 | 8 hours x $25 loaded per hour |
| Absorbed supplies | $150 | Assumed unreimbursed monthly cost |
| Account contribution | $2,270 | 22.7% of revenue |
| Financing expense | $60 | $6,000 financed x 12% assumed annual rate / 12 |
| Contribution after financing | $2,210 | 22.1% of revenue |
The $6,500 starting cost includes the cleaning labor and direct costs already on the bid. Every additional line is assumed missing from that starting cost. Allocate each expense once. The hourly rates include employer burden; do not add payroll taxes to them again.
Account contribution is after the listed account costs, before shared overhead, owner compensation, income tax and other company expenses. Financing expense is shown separately. Receivables and payroll funding are cash balances, not extra profit deductions.
Wages are only part of employer cost.
Employer Social Security is 6.2% of covered wages up to the annual wage base. Employer Medicare is 1.45%, bringing the combined employer rate to 7.65% while both apply. For the full employer cost, check your actual payroll taxes, insurance, benefits and paid nonproductive time.
IRS Topic 751: Social Security and Medicare withholding ratesWhich accounts deserve your next supervisor hour?
Rank accounts by contribution dollars and supervisor hours before renewal. A lower-margin account can still be valuable when it pays reliably and fits the route. Reprice changed scope, repair avoidable rework, and decide where the next supervisor hour earns the most contribution.
Use the cleaning account-margin playbook to build the weekly review, or review your account economics privately with Level.
How do I calculate true profit on a commercial cleaning contract?
Start with contract revenue and deduct the direct costs already recorded. Assign previously unallocated supervisor time, paid travel, replacement coverage, rework and supplies once. Keep account contribution, shared company overhead and financing expense separate.
Is the quoted cleaning margin the same as net profit?
No. Quoted margin depends on the costs included in the bid. Account contribution includes the account costs you allocate. Company net profit also reflects shared overhead, owner compensation, financing, taxes and other expenses under your accounting policy.
Is Level's cleaning account example an industry peer average?
No. It is an independently constructed operating example that shows the method. A peer average requires a defined comparable population, period, sample and consistent cost treatment. Use the published source references on this page within their stated scope.
Commercial Cleaning & Janitorial Software Stack
Geofenced Timekeeping, Building Contracts, and Accounting Ledger Tie-Outs
Commercial janitorial and facility-services margins are won or lost at the individual building level. When mobile timekeeping, recurring contract invoicing, Bill.com subcontractor AP, and payroll live in disconnected silos, overtime and scope creep silently erode account profitability.
Field Ops & Timekeeping Layer
Swept, Janitorial Manager, Aspire & Jobber
Tracks geofenced cleaner clock-ins by building, night-manager inspections, supply requests, and recurring monthly contract schedules.
Payroll, AP & Accounting Layer
Gusto / ADP + Bill.com (BILL) + QuickBooks Online or Xero
Processes high-turnover biweekly W-2 payroll and Bill.com 1099 subcontractor/supply payouts, mapping labor burden and janitorial supplies to facility classes in the GL.
Where the Seam Breaks
Unallocated site hours & unbilled extra-work tags
If biometric or mobile clock-ins export to payroll as a single company-wide lump sum per cleaner, QuickBooks shows total payroll but zero visibility into which building contract is underwater.
| Software / Ledger | Operational Role & Best Fit | Typical Cost & Paired Ledgers | Where the Subledger-to-GL Seam Breaks |
|---|---|---|---|
| Swept / Janitorial Manager | Janitorial scheduling, geofenced mobile clock-ins, inspections & supply tracking Commercial janitorial and facility-maintenance operators (15 to 250+ cleaners) | Pricing: Tiered monthly subscription by cleaner headcount or active locations (~$150 to $600+/mo) Ledgers: QuickBooks Online, Xero, ADP / Gusto payroll exports | Cleaners covering multiple buildings in a single night frequently forget to switch site codes between clock-ins, dumping all hours onto the first building of the route unless geofence exceptions are reconciled before payroll closes. |
| Jobber / ServiceTitan / Aspire | Recurring contract billing, work-order dispatch & strip-and-wax tag work Route-based commercial cleaning, window/pressure washing, and facility services ($1M to $30M+) | Pricing: Jobber $119 to $599/mo; Aspire/ServiceTitan custom per-user enterprise pricing Ledgers: QuickBooks Online, Xero, Sage Intacct | On multi-visit monthly cleaning contracts, native field-software profit reports can misattribute visit revenue or double-count supply bills if recurring contract invoices and per-visit labor logs are not joined on a shared account ID. |
| QuickBooks Online / Xero + Payroll (Gusto / ADP) + Bill.com (BILL) | General ledger, customer/building class P&L, Bill.com vendor/subcontractor AP & biweekly payroll journal Commercial cleaning businesses ($1M to $25M) running account-level margin reviews | Pricing: QBO/Xero $47 to $235/mo + Bill.com ($45 to $79/user/mo) + payroll per-employee fees Ledgers: Primary General Ledger of record | Default payroll integrations post biweekly wages as a single company-wide journal entry, and Bill.com chemical/supply bills often post without a Customer:Job or Location tag. Both payroll journals and Bill.com AP line items need building-level allocation to show true contract gross margin. |
Operator Reconciliation Playbooks & Accounting Controls
Compare all industry accounting & ERP stacks →Account-Level Margin & Labor Drift ControlCatching building-level labor overruns before 200% annual turnover eats the contract
Because commercial cleaning labor absorbs 50% to 60%+ of revenue, a 15-minute nightly overrun per cleaner on a fixed-fee facility contract wipes out half the net profit on that building.
Catching building-level labor overruns before 200% annual turnover eats the contract
Because commercial cleaning labor absorbs 50% to 60%+ of revenue, a 15-minute nightly overrun per cleaner on a fixed-fee facility contract wipes out half the net profit on that building.
- Join weekly geofenced timekeeping exports (hours worked by building ID) against contracted monthly budgeted hours and billed revenue in QuickBooks Online or Xero.
- Separate base recurring janitorial contracts from high-margin periodic tag work (carpet extraction, strip-and-wax, consumable restocking) so a profitable periodic upsell does not mask an underwater nightly cleaning contract.
- Accrue stub-period wages at month-end when biweekly payroll straddles two calendar months so monthly labor percentage does not swing between 2-payroll and 3-payroll months.
Closed-Month Building Margin & Payroll Diagnostic
Want us to map your geofenced cleaner clock-ins and biweekly payroll into building-level P&Ls?
We test one closed month matching your timekeeping exports (Swept, Janitorial Manager, Jobber, Aspire) against ADP/Gusto payroll burden, Bill.com supply/subcontractor AP, and QuickBooks customer/location classes to show which contracts make or lose money.
Benchmarks for other service businesses
Simple pricing
Three tiers, one ladder.
$500+/mo
Bookkeeping
The clean data layer: monthly books, reconciliations, and organized financials AI can work with.
$1,500-$5,000/mo
Scale
The full AI operating layer: custom agents, weekly actions, and benchmarks to grow margin per hour.
Custom
Platform / Multi-Office
Multi-branch benchmarking and scorecards for PE-backed and multi-location groups.
How does your cleaning company compare?
Compare these references with your own revenue, costs and cash records, then choose the pricing, staffing or collection change to test first.
No commitment. Real numbers, not generic advice.
Frequently asked questions
What is a healthy gross margin for a commercial cleaning company?
The 30-40% office and 40-50% specialty bands are retained planning cases, not verified company quartiles. Define direct labor, supplies, travel and other account costs consistently. Public integrated-facilities economics are a different population; overhead is below gross profit.
Why is cleaning industry turnover so high?
The retained turnover bands are historical references with unverified exact populations. Measure exits against average eligible headcount and distinguish workforce turnover from account loss. Test scheduling, supervision and compensation changes rather than promising they halve turnover.
What should I price commercial cleaning per square foot?
Use the displayed prices as planning inputs, not verified engagement medians. In the 50,000 sqft, 20 visit, $25 loaded-hour illustration, $0.13/sqft/month produces $6,500 revenue while the two workload cases use $5,000 or $10,000 labor. Measure service minutes, frequency, travel and supplies before converting to a quote.
How concentrated should my customer base be?
The 20/30-40/60% top-five revenue bands are independent planning sensitivities, not measured quartiles. Model contract expiry, contribution and the cash effect of losing an actual account; profit concentration can differ from revenue concentration.
What's a normal DSO in commercial cleaning?
The 45-60 day band is planning context, not a certified current SMB median. Use actual billing and collections, disputes and customer terms. An assumed 2% discount for 20-day acceleration costs 37.2% simple annualized on 98% collected; weigh financing and credit alternatives.
Sources
- • BSCAI 2024 Industry Market Study (account turnover buckets) (only values with an exact captured source are verified; other attribution is historical context)
- • Level cleaning planning worksheets, not a measured engagement-pricing cohort
- • BLS OEWS, Janitors and Cleaners, Except Maids and Housekeeping Cleaners (SOC 37-2011) wage percentiles (only values with an exact captured source are verified; other attribution is historical context)
- • ABM, Aramark, Vestis 10-K filings (working capital, gross margin, EBITDA proxies) (only values with an exact captured source are verified; other attribution is historical context)
- • FMLink janitorial staffing benchmarks (only values with an exact captured source are verified; other attribution is historical context)
- • NCCI workers comp loss cost guides (Class 9014) (only values with an exact captured source are verified; other attribution is historical context)
- • Level cleaning operating references and scenarios; contractor benchmark research is a separate population, not a measured janitorial percentile cohort.
The Level Index combines named research sources with clearly labeled Level estimates. Each figure has its own source, time period and definition. The planning ranges are examples, rather than measured results from Level clients. Check that your business model and accounting methods fit the comparison. © 2026 Level. All rights reserved.
Read the source basis and limits beside each reference. Definitions and sample sizes are shown when captured from the reviewed source. Download this dataset (JSON, free to cite).