Trade-Specific Margin Benchmarks for Contractors
Gross margin, net margin, parts markup, and labor markup benchmarks for 8 trades. Interactive calculator included.
Published May 2026 · 8 min read · Source: Jobber, ServiceTitan, ACCA, NAHB 2024
Every trade has different margin expectations. A plumbing contractor running at 25% gross margin is doing fine. A painting contractor at 25% is leaving money on the table. General contractors accepting 15% margins on complex projects are working for free after overhead.
This guide breaks down the benchmark ranges for 8 trades, based on 2024-2025 data from Jobber, ServiceTitan, the Air Conditioning Contractors of America (ACCA), and the National Association of Home Builders (NAHB). Use the calculator below to see where your pricing lands.
Interactive Margin Calculator
Select your trade, enter your total job cost (labor + materials + overhead), and see the recommended price range based on industry benchmarks.
HVAC Margin Benchmarks
Gross Margin
20-30%
Net Margin
5-10%
Parts Markup
25-50%
Labor Markup
20-30%
Benchmarks sourced from Jobber, ServiceTitan, ACCA, and NAHB 2024 data. Tucson market averages.
Margin Benchmarks by Trade
These ranges represent what healthy, profitable contractors in each trade typically achieve. If you are below the minimum, you are underpricing. If you are above the maximum, you may be pricing yourself out of competitive bids.
| Trade | Gross Margin | Net Margin | Parts Markup | Labor Markup |
|---|---|---|---|---|
| HVAC | 20-30% | 5-10% | 25-50% | 20-30% |
| Plumbing | 25-35% | 5-12% | 40-60% | 25-35% |
| Electrical | 25-35% | 5-12% | 40-60% | 25-35% |
| Painting | 35-50% | 10-20% | 20-30% | 35-50% |
| Roofing | 20-40% | 5-15% | 25-40% | 20-35% |
| General Contracting | 15-25% | 3-8% | 20-30% | 15-25% |
| Landscaping | 20-30% | 8-15% | 20-30% | 20-30% |
| Handyman | 30-50% | 10-20% | 30-50% | 30-50% |
Why Margins Vary by Trade
Three factors drive the differences:
- 1.Material intensity. Roofing and general contracting are material-heavy. Materials are a pass-through cost with lower markup potential. Service trades like plumbing and HVAC have higher labor-to-material ratios, which means more margin on the labor component.
- 2.Emergency premium. HVAC and plumbing have emergency call volume that commands premium pricing. A burst pipe at 2am is not price-shopped. Painting and landscaping are almost entirely scheduled work, which means more competitive pressure on pricing.
- 3.Skill barrier. Electrical and HVAC require licensing and specialized training. Higher barriers to entry mean less price competition. Handyman and landscaping have lower barriers, which drives margins down through competition.
How to Use These Benchmarks
Step one: calculate your actual margins on your last 10 jobs. Not what you think you are making. What you actually made after labor burden, overhead allocation, and non-billable time.
Step two: compare to the benchmark range for your trade. If you are below the minimum, you have a pricing problem. If you are within the range, you are competitive. If you are above the maximum, you may be losing bids to competitors who price closer to the middle.
Step three: adjust. The fastest path to better margins is not working harder. It is pricing correctly. Use the Hourly Rate Calculator to build your labor rate from the ground up. Then apply the markup ranges above to your materials and labor separately.
The Bottom Line
Knowing your trade's margin benchmarks is the difference between guessing and pricing with confidence. A plumbing contractor who knows that 25-35% gross margin is the target will not accept a 15% margin job without understanding why. A painting contractor running at 20% gross margin knows immediately that something is wrong.
The calculator above gives you a starting point. The real work is tracking your actual margins job by job, comparing to these benchmarks, and adjusting your pricing when you drift.
If you want to dig into the full pricing framework, including labor burden calculation, overhead recovery, and seasonal adjustments, read the contractor pricing strategy guide. It walks through the math step by step.
Ernesto Romero
Ernesto is the founder of 1of1 Consulting and the 1 OF 1 Contractor Network. He grew up in Tucson working alongside family in property restoration, spent his summers doing demolition for RCD Tucson, and has worked across HVAC, paint, and restoration before launching 1of1 to give contractors the systems and community they never had access to.
Get the weekly playbook in your inbox
Every Tuesday | one pricing tip, one system, one action. Written for Tucson contractors who want to grow without burning out.
No spam. Unsubscribe anytime.
Related Guides