Benchmarks
Industry Profit Margin Benchmarks
Compare your business against typical gross margins, net margins, and markups across industries. Each guide includes cost breakdowns, insights, and tips to improve profitability.
Restaurant
Restaurants typically operate with gross margins of 60-70% and net margins of 3-6%. Full-service restaurants tend toward...
Retail
Retail gross margins vary widely by category: grocery stores average 25-30%, while apparel and specialty retail often ac...
Software / SaaS
Software businesses have some of the highest gross margins of any industry — typically 70-85%. Net margins vary from 15-...
Construction
Construction companies typically operate with gross margins of 15-25% and net margins of 2-8%. Residential contractors t...
E-commerce
E-commerce businesses typically have gross margins of 30-50% and net margins of 5-15%. DTC (direct-to-consumer) brands a...
Consulting
Consulting firms typically achieve gross margins of 40-60% and net margins of 15-30%. Solo consultants and niche special...
Bakery
Bakeries typically operate with gross margins of 50-65% and net margins of 5-10%. Specialty bakeries with custom cakes a...
Food Truck
Food trucks typically achieve gross margins of 55-70% and net margins of 6-15%. The low overhead model (no rent, smaller...
Gym / Fitness
Gyms and fitness centers typically operate with gross margins of 60-80% and net margins of 10-25%. Boutique studios with...
Hair Salon
Hair and beauty salons typically achieve gross margins of 55-70% and net margins of 5-15%. Commission-based salons have ...
Daycare / Child Care
Child care centers typically operate with gross margins of 30-50% and net margins of 5-15%. In-home daycares achieve hig...
Real Estate
Real estate agencies typically achieve gross margins of 40-65% and net margins of 10-25%. Solo agents with low overhead ...
Dental Practice
Dental practices typically achieve gross margins of 60-75% and net margins of 20-40%. The high demand for dental service...
Law Firm
Law firms typically achieve gross margins of 60-85% and net margins of 25-45%. The wide range reflects the dramatic diff...
Photography Business
Professional photographers typically achieve gross margins of 60-80% and net margins of 20-40%. The business model varie...
Pet Grooming / Dog Grooming
Pet grooming businesses typically achieve gross margins of 70-85% and net margins of 15-30%. The industry has grown cons...
Plumbing
Plumbing businesses typically achieve gross margins of 45-65% and net margins of 10-20%. The industry is recession-resis...
Auto Repair
Auto repair shops typically achieve gross margins of 50-70% and net margins of 10-25%. Labor is the highest-margin compo...
HVAC
HVAC businesses typically achieve gross margins of 40-60% and net margins of 10-20%. The industry is highly seasonal wit...
Cleaning Services
Cleaning services typically achieve gross margins of 70-85% and net margins of 10-25%. The business has low barriers to ...
Lawn Care & Landscaping
Lawn care businesses typically achieve gross margins of 60-80% and net margins of 15-30%. The industry is highly seasona...
Personal Training
Personal trainers typically achieve gross margins of 70-90% and net margins of 30-55%. The business model varies widely ...
How to use these benchmarks
Industry benchmarks give you a starting point for comparison, not a target. Your optimal margins depend on your business model, location, customer base, and growth stage. Use the ranges (low / average / high) to understand where you sit, then use our free calculators to analyze your own numbers and identify areas for improvement.