Most cleaners should charge somewhere near $40 for each hour of cleaner labor once wages, supplies, insurance, driving and overhead are counted, then choose a pricing method that returns that figure on a typical home. The example below builds it from cost: an 1,800 square foot house takes two cleaners about two hours, which is four labor hours, and a price near $160 to $180 covers the cost with a profit. Rates differ by city, so the numbers are illustrative; compare yours with three local quotes at the end.

The mistake that sinks new cleaning businesses is pricing from what a competitor posts. A posted price tells you nothing about their cost, their speed or whether they are still in business next year.

Start from your cost per labor hour

A labor hour is one person cleaning for one hour. Work out what each costs you, in order:

  • Wage: $18 an hour for an employee cleaner, or what you pay yourself.
  • Payroll taxes and workers' compensation: about 10 percent of wages here, $1.80. Your rate depends on your state and insurer.
  • Supplies and equipment wear: $1.50 an hour.
  • Liability insurance, bonding and scheduling software: $1.20 an hour, spread across your hours.

That is $22.50 a labor hour in direct cost. Then add the job costs that aren't tied to hours: 30 minutes of paid drive time ($9.90) and fuel ($4), so $13.90 per visit.

Now the 1,800 sq ft home. Two cleaners for two hours is 4 labor hours: 4 x $22.50 = $90, plus $13.90 for travel, so $103.90 of cost. You also need overhead (marketing, admin, your own unpaid time), say 15 percent of the price, and a profit of 20 percent. That leaves 65 percent of the price to cover the $103.90, so the price is $103.90 divided by 0.65, about $160. That's $40 per labor hour, and it's your floor for this home. Below it, you lose money or work for free.

Hourly pricing: when it works

Charging $40 per labor hour means the 4-hour home is $160, a 5-hour home $200 and a 3.5-hour home $140. It's fair, and it protects you from a house that is much dirtier than described. It works best for first visits, deep cleans, move-outs and any home you haven't seen. The drawback: customers dislike open-ended bills, and a fast cleaner earns less. Offer an estimate with a cap: "Four to five hours, $160 to $200, and I'll text you if it will run longer."

Flat pricing by home size

Flat pricing sets one price for a size and a scope. For an 1,800 sq ft home with a standard clean, say $180 (10 cents a square foot).

  • If it takes 4 labor hours: cost is $103.90, overhead at 15 percent is $27, so profit is $180 - $103.90 - $27 = $49.10, about 27 percent.
  • If it takes 5 labor hours: cost is $126.40, overhead $27, profit $26.60, about 15 percent.
  • If it takes 3.5 labor hours: cost is $92.65, profit $60.35, about 34 percent.

Flat prices reward speed and give customers a number they can plan around. They go wrong when the scope is vague. Write what is included ("kitchen, 2 bathrooms, 3 bedrooms, living and dining, floors, dusting") and what is extra.

Per-room pricing

Per-room pricing adds up the rooms: kitchen $45, two bathrooms at $35 each ($70), three bedrooms at $20 each ($60) and a living and dining area at $30. Total: $205. It's the easiest for a customer to understand and adjust ("skip the guest room and save $20"). It tends to overprice small rooms and underprice a cluttered one, so reserve it for homes you can see on a photo walk-through, and check that the rooms add up to at least your $160 floor.

The first-clean premium and add-ons

A first clean takes longer because dirt and grime haven't been maintained. Price it at 1.5 times the regular visit, here $270 (about 6 labor hours of work), and tell the customer it is a one-time reset. Add-ons are priced separately: inside the oven $35, inside the refrigerator $30, interior windows $5 each, laundry fold $20 an hour. Set a minimum visit: three labor hours at $40, so $120, with a note that it covers travel and setup. A $60 job for a one-bedroom apartment doesn't survive $13.90 of drive costs.

A recurring discount that still pays

Recurring customers are the business, so a discount is worth giving, but only while the shorter visit keeps you above the floor. A maintained home takes about 3.5 labor hours instead of 4. Offer biweekly at 10 percent off, $162. Cost at 3.5 hours is $92.65, overhead $24.30, profit $45.05, about 28 percent. Compare that with giving 20 percent off ($144): profit falls to about $30, 21 percent, and a 4-hour visit leaves only $18.50. A rule: never discount below your floor at the shorter time. Our piece on raising prices without losing customers covers the later step when your costs rise.

Checking your price against three local quotes

Before you publish a price, get three quotes for your own home from local cleaners, or ask three friends who hire them. Note the price, the scope, the time they plan and whether they're insured. If you're 30 percent over, check your speed and your scope. If you're far under, you're probably missing a cost, usually drive time or insurance. If your number is higher and you have the reviews, many customers will pay it; a lower price attracts customers who look for the cheapest. Present the price in writing; how to write a quote for a service shows the layout, and hourly rate versus flat fee covers the choice more generally. For wider pricing questions see how to price your services.

Getting your first 20 regular clients is a separate job from pricing; getting customers for a cleaning business covers it. If you also mow, the same cost-first method is applied to routes in how much to charge for lawn mowing, and pressure washing uses timed jobs.

A good price still needs someone to say yes to it. Rocketship finds the buyers, emails them from your own Gmail, follows up, and books the meeting on its own. Plans that get you customers start at $24.99 a month (Launch), and both Launch and Frontier start with a 7-day free trial, card required.