The Ultimate Guide to Job Costing for Commercial Cleaning Companies

Running a profitable commercial cleaning business isn’t just about keeping spaces spotless—it’s about understanding your costs and pricing your services correctly. Without accurate job costing, even loyal clients and steady work can leave your bottom line in the red. This guide walks you through everything you need to know about how to price your cleaning jobs, commercial cleaning pricing, and managing the hidden costs that impact your profits.

What Is Job Costing in Commercial Cleaning?

Job costing is the process of calculating all costs associated with completing a specific cleaning job. For commercial cleaning companies, this goes beyond multiplying labor hours by hourly rates. It includes:

• Labor costs (wages, benefits, overtime, and labor burden)
• Supplies and equipment usage
  
• Transportation and travel
  
• Administrative overhead
  
• Hidden costs such as rework, inefficiencies, and staff turnover

Understanding job costing ensures every client contract is profitable and no cost goes unnoticed. Accurate job costing also builds cost transparency your clients can trust.

Why Job Costing Matters

Many cleaning businesses struggle with underpricing, overestimating profits, or losing money on certain contracts. Proper job costing gives you:

• Profitability Insight – Know which clients or jobs are truly profitable.
• Better Pricing Decisions – Use data-driven janitorial pricing strategies to make smarter bids.
• Efficiency Tracking – Identify inefficiencies and hidden costs.
• Client Transparency – Show clients exactly what they’re paying for and avoid common cleaning bid mistakes.

Six Steps to Profitable Job Costing

Here’s a clear summary of the six key steps, including what to track and why each matters:

Step	Focus Area	Key Components to Include	Why It Matters
1	Calculate Labor Costs	Full Labor Burden (Wages + Payroll Taxes, Workers' Comp, Benefits, PTO)	Labor is the largest expense. Missing the 25–40% labor burden guarantees underpricing.
2	Include Supplies & Equipment	Consumables, Replacements, and Equipment Depreciation (cost per usage hour)	Prevents profit erosion and ensures asset costs are covered.
3	Factor in Overhead	Indirect costs (Rent, Utilities, Insurance, Admin Salaries) calculated as an Overhead Allocation Rate	Ensures all operating costs are reflected in your pricing.
4	Account for Hidden Costs	Costs from Rework, Staff Turnover, Absenteeism, and Scheduling Inefficiencies	Stops "silent leaks" that quietly reduce profitability.
5	Set Your Pricing	Use Cost-Plus or Value-Based models. Factor in Cleanable Square Footage	Guarantees competitive bids grounded in true operational costs and a healthy profit margin.
6	Monitor and Adjust	Continuous review of costs and profits per client, and updating pricing for supply or labor changes	Keeps the business profitable and competitive by reacting quickly to rising costs or market changes.

Step 1: Calculate Labor Costs Accurately

Labor is often the largest expense in commercial cleaning. Don’t just track hourly wages—you must account for the full labor burden:

• Hourly rates for each cleaner
• Overtime and premium pay
• Time spent traveling between jobs
• Time spent on training or administrative tasks
  
  

Full Labor Burden includes all non-wage costs, which can quietly add 25–40% to the hourly rate:

• Employer-paid payroll taxes
• Workers’ Compensation Insurance premiums
• Health insurance and retirement contributions
• Paid Time Off (PTO) and holiday pay

Tip: Capture every hour and cost accurately with a job costing calculator.

Step 2: Include Supplies and Equipment

Supplies and equipment can eat into your profit if not properly accounted for. Include:

• Consumables like chemicals, gloves, and paper products
• Replacement and repair costs
• Equipment depreciation

Example: A $4,000 floor scrubber expected to last 2,500 hours adds $1.60 per hour to a job ($4,000 ÷ 2,500).

Tracking these costs ensures no surprises from hidden expenses.

Step 3: Factor in Overhead

Overhead includes indirect costs such as:

• Office rent and utilities
• Insurance and licensing
• Marketing and client acquisition
• Administrative staff salaries

Allocate overhead across jobs to get realistic pricing insights.

Step 4: Account for Hidden Costs

Many companies miss costs that quietly reduce profitability, such as:

• Rework due to missed tasks
• Staff absenteeism or turnover
• Extra travel time or scheduling inefficiencies

Including these in your pricing ensures no revenue leaks and avoids common bid mistakes.

Step 5: Set Your Commercial Cleaning Pricing

Once you know your true costs, choose a pricing model:

• Cost-plus pricing – Add a set profit margin to calculated costs
• Value-based pricing – Price according to the service’s value
• Tiered pricing – Offer service packages with corresponding costs

Factor in cleanable square footage for accurate labor estimates.

Step 6: Monitor and Adjust

Job costing is ongoing. Continuously track costs and profits:

• Review costs per client or job monthly
• Update pricing for changes in supplies or labor
• Use analytics to spot trends and adjust quickly

Resources & Tools

• Job Costing Template – Automate labor and cost tracking
• Pricing Strategy Guide – Learn how to price smarter using real job data
• Price Adjustment Guide – Know when and how to update rates
• Step-by-Step Pricing Guide – A complete walkthrough
• Contract Templates – Win more business professionally

Take Control of Your Cleaning Profits with Swept

Accurate job costing is the backbone of any profitable commercial cleaning business. By calculating labor, supplies, overhead, and hidden costs—and continuously monitoring your jobs—you can confidently price your services, avoid revenue leaks, and maintain a healthy profit margin.

Tracking all these details manually can be challenging. That’s where Swept comes in. Our platform helps you:

• Track labor, supplies, and overhead across every job
• Monitor costs and profitability per client in real time
• Stay on top of hidden costs like rework, overtime, and inefficiencies
• Provide cost transparency for your clients, building trust and credibility

With Swept, you spend less time chasing numbers and more time growing your business—keeping your cleaning operations profitable and your team efficient.