Painting Business Profit Margin: IRS Data, Costs & Break-Even
Quick answer: IRS 2023 data for sole proprietors across specialty trade contractors (NAICS 238) reports a 15.7% net margin. Painting is one trade in that sector, so this is not a painting-business average. Schedule C net income is before owner pay. Actual painting margin depends on prep hours, coating and supply use, crew productivity, travel, rework, and weather exposure.
What counts as painting profit?
For a paint job, subtract direct coating, sundries, and paid crew labor from the collected price to find gross profit. Divide by the collected price for gross margin. Net margin deducts the remaining business expense, including vehicles, insurance, equipment, estimates, administration, and marketing. A material or labor markup will not equal the margin on the finished job. The markup versus margin calculator shows how the two measures differ.
Owner pay needs its own line in the analysis. A sole proprietor painting walls or supervising crews does not deduct a wage paid to themselves on Schedule C. The reported net income therefore includes payment for that labor. Assign a reasonable cost to owner field and management hours before treating the remaining amount as business profit. The IRS sector table below cannot answer what a painting owner personally earns.
| Metric | Construction: Specialty trade contractors (NAICS 238) |
|---|---|
| Net margin | 15.7% VERIFIED DATA |
| Average receipts per return | $102,220 VERIFIED DATA |
| Average net income per return | $16,054 VERIFIED DATA |
| Materials & supplies | 12.1% VERIFIED DATA |
| Contract labor | 12.9% VERIFIED DATA |
| Cost of labor + salaries and wages | 11.0% VERIFIED DATA |
| Car and truck | 7.7% VERIFIED DATA |
| Supplies | 6.5% VERIFIED DATA |
| Depreciation | 4.3% VERIFIED DATA |
| Insurance | 1.8% VERIFIED DATA |
| Advertising | 0.6% VERIFIED DATA |
Schedule C net income is before any owner salary: sole proprietors do not deduct pay to themselves, so net margin here includes the owner's compensation for their own labor.
Sector-level figures: the table does not split electricians, plumbers, roofers etc.; NAICS 238 covers all specialty trades, NAICS 561 covers landscaping, pest control and building services together with unrelated admin services (staffing, security, travel).
Why a painting bid can miss its margin
Prep is often the largest uncertainty: scraping, patching, masking, moving contents, and protecting floors can use more hours than applying the finish. Separate prep and coating hours in the estimate, and state what surface conditions are included. Coating coverage changes with substrate, color change, and the number of coats. Record actual gallons and sundries against each finished job rather than assuming that labor alone drives gross margin.
Interior projects can keep a crew busy through poor weather, while exterior work may be delayed by rain or surface conditions. Travel between small jobs also reduces billable hours. The source data reports a BLS painter median wage of $23.75 per hour (official occupational wage), not the full cost of employment or a selling price. BLS ECEC construction total compensation is $51.96 per hour (official broad-industry measure), not a painter-specific burden. Add actual payroll expense, van costs, insurance, equipment wear, and touch-up visits to the shop records. The startup cost and license guides address other operating commitments.
Worked painting example
Example inputs, not a benchmark: Suppose a month brings $30,000 in collected revenue, $5,000 of paint and supplies, $12,000 of paid crew labor, and $9,000 of other operating expense. Gross profit is $30,000 − $5,000 − $12,000 = $13,000; gross margin is $13,000 ÷ $30,000 = 43.33%. Net profit is $13,000 − $9,000 = $4,000; net margin is $4,000 ÷ $30,000 = 13.33%. Those percentages are calculated example outputs, not industry benchmarks. Owner labor remains inside the $4,000 if the owner was unpaid. Run the calculator with actual job totals.
Profit Margin Calculator
| Profit | — CALCULATED |
|---|---|
| Margin Percent | — CALCULATED |
Show formula
Results use the entered costs, revenue, hours, and percentages shown above. Percentages are divided by 100 before calculation.
How many completed paint jobs cover overhead?
Estimate contribution per job as collected ticket minus coating, supplies, paid labor, and other variable job cost. Divide fixed monthly expense by that contribution, rounding up to a whole job. Use the break-even calculator for the threshold and jobs needed for a revenue target. A room repaint and an exterior project have different ticket sizes and crew days, so test each mix against available capacity. Consult the painting rate guide when checking estimated labor hours.
Jobs = fixed monthly cost / (average ticket × gross margin). The IRS figure here is 15.7% for all NAICS 238 sole proprietors, before owner pay. It is not a painting target; compare your own net margin after accounting for owner labor. It can be when bids cover prep, coatings, crew time, weather delays, touch-ups, and overhead. Track actual hours and materials by completed job. The sector-level IRS table cannot identify painters' owner earnings. Separate pay for the owner's labor from residual shop profit using business records. Unexpected scraping, patching, and masking increase crew hours even when gallons barely change. Define the surface condition and prep scope in the quote. Measure them separately because access, weather, prep, and scheduling differ. Blend them only after calculating each line from completed-job records.Break-Even Calculator
Jobs Per Month — CALCULATED Show formula
Frequently asked questions
What is a good profit margin for a painting business?
Is a painting business profitable?
How much does a painting business owner make?
Why does prep matter more than paint price?
Should interior and exterior work share one margin estimate?
See the painting business hub for further planning.
Official sources
Last updated: October 2, 2026