What Should My Builder be Charging for Their Overhead and Profit?

Remodeling contractors should aim to achieve a gross profit margin of approximately 25% to 30%, which includes both overhead and profit. This typically translates to a net profit margin of 4% to 7%, representing profit after all operating expenses are accounted for. These benchmarks are important for contractors to assess the financial health and efficiency of their operations. Maintaining margins within this range helps ensure long-term sustainability and the ability to reinvest in quality, service, and growth.

To learn more, click here to read an in-depth article by Rose Quint for the National Association of Home Builders (NAHB).