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.
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Gross and net figures are the published average for each benchmark dataset.
RestaurantRestaurants typically operate with gross margins of 60-70% and net margins of 3-6%. Full-service restaurants tend toward lower net margins, while fast-casual and food trucks can push higher.Compare →RetailRetail gross margins vary widely by category: grocery stores average 25-30%, while apparel and specialty retail often achieve 45-55%. Net margins are much tighter at 2-5%.Compare →Software / SaaSSoftware businesses have some of the highest gross margins of any industry — typically 70-85%. Net margins vary from 15-25% for mature companies, while startups often run negative during growth phases.Compare →ConstructionConstruction companies typically operate with gross margins of 15-25% and net margins of 2-8%. Residential contractors tend to have higher margins than commercial or heavy civil work.Compare →E-commerceE-commerce businesses typically have gross margins of 30-50% and net margins of 5-15%. DTC (direct-to-consumer) brands achieve higher margins than marketplace sellers due to the absence of platform fees.Compare →ConsultingConsulting firms typically achieve gross margins of 40-60% and net margins of 15-30%. Solo consultants and niche specialists often see the highest margins due to minimal overhead.Compare →BakeryBakeries typically operate with gross margins of 50-65% and net margins of 5-10%. Specialty bakeries with custom cakes and premium products achieve higher margins than bread-and-pastry-only operations.Compare →Food TruckFood trucks typically achieve gross margins of 55-70% and net margins of 6-15%. The low overhead model (no rent, smaller staff) allows food trucks to outperform brick-and-mortar restaurants on margin percentage despite lower average revenue.Compare →Gym / FitnessGyms and fitness centers typically operate with gross margins of 60-80% and net margins of 10-25%. Boutique studios with premium pricing can achieve higher margins than big-box gyms, which rely on membership volume. Below: the full benchmark table, cost drivers, and local data for 18 US cities.Compare →Hair SalonHair and beauty salons typically achieve gross margins of 55-70% and net margins of 5-15%. Commission-based salons have higher gross margins but lower per-service profitability than booth-rental models.Compare →Daycare / Child CareChild care centers typically operate with gross margins of 30-50% and net margins of 5-15%. In-home daycares achieve higher net margins due to lower overhead, while commercial centers have higher revenue but tighter margins on facility costs.Compare →Real EstateReal estate agencies typically achieve gross margins of 40-65% and net margins of 10-25%. Solo agents with low overhead achieve the highest margins, while large brokerages face margin compression from agent splits and office costs.Compare →Dental PracticeDental practices typically achieve gross margins of 60-75% and net margins of 20-40%. The high demand for dental services and relatively low COGS (materials, lab fees) make dentistry one of the more profitable healthcare professions, though overhead from staff, rent, and equipment is substantial.Compare →Law FirmLaw firms typically achieve gross margins of 60-85% and net margins of 25-45%. The wide range reflects the dramatic difference in margins between high-volume practices (personal injury, real estate) and specialized practices (corporate, IP) where per-matter revenue is much higher.Compare →Photography BusinessProfessional photographers typically achieve gross margins of 60-80% and net margins of 20-40%. The business model varies widely between portrait/wedding (high per-session revenue, seasonal) and commercial (lower per-client but stable recurring). Equipment depreciation is the most commonly underestimated cost.Compare →Pet Grooming / Dog GroomingPet grooming businesses typically achieve gross margins of 70-85% and net margins of 15-30%. The industry has grown consistently at 5-7% annually (IBISWorld), driven by increasing pet ownership (70% of US households own a pet as of 2025). The business is labor-intensive with per-dog profit heavily dependent on efficient scheduling.Compare →PlumbingPlumbing businesses typically achieve gross margins of 45-65% and net margins of 10-20%. The industry is recession-resistant with steady demand from both residential and commercial customers. Material costs (pipes, fittings, fixtures) consume 35-50% of revenue, making them the single largest expense.Compare →Auto RepairAuto repair shops typically achieve gross margins of 50-70% and net margins of 10-25%. Labor is the highest-margin component (selling technician time at 3-5x their hourly wage), while parts markups (20-40%) provide additional profit. The industry is competitive but steady — the average age of vehicles on US roads is over 12 years, meaning more repairs per vehicle.Compare →HVACHVAC businesses typically achieve gross margins of 40-60% and net margins of 10-20%. The industry is highly seasonal with 60%+ of annual revenue concentrated in spring and summer (cooling season) and a smaller peak in winter (heating). Installation work has lower margins (30-40%) but higher dollar volume, while service and repair has higher margins (60-80%) but lower per-visit revenue.Compare →Cleaning ServicesCleaning services typically achieve gross margins of 70-85% and net margins of 10-25%. The business has low barriers to entry and is highly competitive, which compresses net margins for most operators. For solo owner-operators (no employees), effective net margins can reach 40-60% because the owner captures what would otherwise be labor costs.Compare →Lawn Care & LandscapingLawn care businesses typically achieve gross margins of 60-80% and net margins of 15-30%. The industry is highly seasonal with 70-80% of annual revenue concentrated in the 7-month growing season (April-October). The low barrier to entry ($3K-$8K startup) creates intense competition, compressing prices in many markets.Compare →Personal TrainingPersonal trainers typically achieve gross margins of 70-90% and net margins of 30-55%. The business model varies widely between in-person training (lower revenue, higher consistency) and online coaching (higher scalability, lower per-client revenue). Solo trainers who train clients in a studio or gym face rent costs of 20-35% of revenue, while online trainers have much lower overhead but higher marketing costs.Compare →
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.