You're Probably Undercharging (And I Know Because I Did Too)

When Michelle and I started our cleaning business at 51, I spent three sleepless nights trying to figure out how much to charge for house cleaning. I checked competitor websites, looked at Thumbtack ranges, and still had no idea if my numbers made sense. So I picked a price that "felt fair," landed my first client, and spent the next two months working for what turned out to be less than minimum wage after expenses.

Here's what I've learned after seven years and hundreds of clients: pricing a cleaning business isn't guessing, and it's not about being the cheapest. It's a simple formula that accounts for your actual costs, your time, and the value you deliver. In this post, I'll show you exactly how to calculate what to charge so you make real money—not just stay busy.

Why Most New Cleaners Get Pricing Wrong

The biggest mistake I see second-act entrepreneurs make is pricing based on what they think customers will pay rather than what they need to earn. You're coming from a career where you probably made decent money. You can't afford to work for $15/hour in your own business.

I've watched people price a three-bedroom house at $120 because that's what they saw online. Then they spend four hours cleaning it, drive 30 minutes each way, and buy supplies. After expenses and taxes, they made about $18/hour. And they're exhausted.

What happens when you underprice:

• You attract price-shopping customers who complain the most

• You can't afford good equipment or quality supplies

• You burn out trying to make volume compensate for low margins

• You resent the business you built

When we lost our $2,400/month contract last year, I had to replace that revenue fast. But I didn't drop my prices—I got better at demonstrating value. That's the difference between surviving and building something sustainable.

The Real Formula: How Much to Charge for House Cleaning

Forget hourly rates for a moment. Here's the framework I use after seven years:

Calculate Your Minimum Hourly Rate

Start with what you actually need to earn. Not want—need.

Your monthly expenses:

• Business insurance: ~$50-100/month

• Supplies and equipment: ~$200-400/month

• Vehicle costs (gas, maintenance): ~$300-500/month

• Marketing: ~$100-300/month

• Phone, software, misc: ~$100/month

Your personal requirement:

• What do you need to take home monthly?

• Add 30% for taxes (self-employment tax is brutal)

• Divide by billable hours you can realistically work per month

For me at 58, I can handle about 20 billable hours per week comfortably. That's 80-90 hours per month. If I need $4,000/month personal income plus $1,000 in business expenses, I need to generate $5,000. Add 30% for taxes ($1,500), and I need $6,500 in revenue. That's $72-81 per billable hour minimum.

Factor in Non-Billable Time

Here's what nobody tells you: you're not cleaning 40 hours a week. You're also:

• Driving between jobs (30-45 minutes daily)

• Doing estimates and consultations

• Handling scheduling and customer service

• Buying supplies and maintaining equipment

• Doing bookkeeping

For every billable hour, I spend about 0.3 hours on non-billable work. So my $72/hour minimum becomes $93/hour to cover everything.

Price by the Job, Not the Hour

Once you know your hourly minimum, price each job based on how long it actually takes. Walk through the house during your estimate and calculate:

Standard 3-bedroom, 2-bath house (1,500-1,800 sq ft):

• Initial deep clean: 4-5 hours = $375-475

• Recurring maintenance clean: 2.5-3 hours = $235-280

Factors that add time:

• Pet hair (add 0.5 hours)

• Excessive clutter (add 0.5-1 hour)

• Multiple levels/stairs (add 0.25 hours per level)

• Move-out/move-in (add 1-2 hours)

I always quote flat-rate pricing, never hourly. Customers want to know the total cost, and you want to benefit from getting faster as you gain experience.

💡 Free Resource: Grab my Complete Commercial Cleaning Business Startup Guide to streamline your pricing strategy. No fluff—just the pricing calculator and estimating worksheets I wish I'd had when I started at 51.

How to Actually Implement This Pricing

Here's my process for every new client inquiry:

Step 1: Phone screening (5 minutes) Ask about square footage, bedrooms, bathrooms, pets, and special requests. This tells me if it's worth an in-person estimate.

Step 2: In-person walkthrough (20-30 minutes) Walk every room. Note baseboard condition, window count, ceiling height, carpet vs. hard floors. I use a simple checklist on my phone.

Step 3: Calculate and present (same visit) I run the numbers in my head based on my formula, then present the price on the spot. "For a recurring bi-weekly service, I can do this for $265 per visit. The first deep clean would be $425."

Quick wins you can implement today:

• Add 15-20% to whatever you think you should charge

• Never compete on price—compete on reliability and quality

• Build a 10% annual increase into your service agreement

The biggest mistake? Waiting to "build up clients" before raising your rates. Start at the right price from day one. I've never lost a quality client over a $20 difference.

Advanced Pricing Strategy

After seven years, here are the refinements that separate professionals from beginners:

Price for profit, not just coverage. Your goal isn't to cover expenses—it's to build wealth. I target 40-50% profit margins after all expenses. That's how Michelle and I are working toward spending November through April somewhere warmer than Michigan.

Create pricing tiers. We offer standard, premium, and luxury service levels. Same house, but premium includes interior windows and oven. Luxury adds interior fridge and organizing services. About 30% of clients upgrade.

Charge for consistency. Recurring clients should pay less per visit than one-time clients, but not 50% less. I offer a 10-15% discount for weekly or bi-weekly service. That rewards loyalty without killing margins.

Know when to walk away. If someone says "the last cleaner only charged $100," I respond: "I understand. If that worked for you, you should probably call them back." I'm building a business, not collecting clients.

If you want the complete pricing calculator, estimate templates, and service agreements I use in my business, they're all included in my Complete Operations System.

The Bottom Line on Cleaning Business Pricing

Here's what I wish I'd understood at 51 when we started: you're not just cleaning houses. You're providing peace of mind, time freedom, and a consistently clean environment. That has real value, and you should be paid accordingly.

The math is simple: calculate your true costs, factor in your time (including non-billable hours), add your profit margin, and price by the job. Don't apologize for your rates. The right clients—the ones who value quality and reliability—will pay them.

After seven years, I can tell you that raising my prices was the best business decision I made. We work fewer hours, serve better clients, and actually enjoy what we do. That's what a second-act business should deliver.

📋 Ready to Get Started?

Download my free Complete Commercial Cleaning Business Startup Guide with everything you need to launch your cleaning business profitably. No hype, no fluff—just practical pricing strategies and templates from someone who's been doing this for 7 years.