Pre-loaded with plumbing trade overhead defaults. Enter your job costs — get your exact bid price and profit margin.
For service plumbing (repair & replace), markup tends to run higher (35–50%) due to dispatch overhead. For new construction rough-in, competitive pressure often limits markup to 20–28%.
Plumbing contractors typically run higher markups than general contractors because of the high cost of maintaining pipe and fitting inventory, the significant warranty exposure on fixture and appliance installations, and the premium service-call overhead that comes with dispatch-based work. Industry benchmarks put plumbing markup at 25–40% on direct costs, with service and repair work often running 40–60% due to the overhead of maintaining a fully-stocked service van and handling after-hours calls.
The difference between a new construction plumber and a service plumber is massive in terms of pricing strategy. New construction work is bid competitively, scope is defined, and margins are thin. Service work — toilet repairs, leak fixes, water heater replacements — carries significantly higher markup to cover the dispatch model, small job minimums, and the cost of stocking parts for every possible scenario.
A licensed plumber at $42/hr base wage has a true hourly cost of $55–60/hr burdened. Workers' comp for plumbers typically runs 8–14% of wages (lower than roofing or electrical, but still significant). Add FICA, unemployment insurance, and any health or retirement benefits and you're consistently 30–40% above base wage. If you're billing at $75/hr labor rate and your burdened cost is $58/hr, your actual labor margin is only 22.7% — before overhead.
| Project Type | Typical Markup | Notes |
|---|---|---|
| Emergency service call | 50–80% | After-hours premium, minimum charge |
| Standard service / repair | 40–60% | Dispatch overhead, small job |
| Water heater replacement | 30–45% | Equipment markup + installation |
| Bathroom remodel rough-in | 25–35% | Defined scope, renovation complexity |
| New construction rough-in | 18–28% | Volume, competitive bidding |
| Commercial | 15–25% | High competition, volume-based |
Plumbers have a significant revenue opportunity in material markup. Standard practice is to mark up materials 20–40% above your supplier cost. For fixtures (faucets, toilets, sinks), the markup can be higher — some plumbers apply 30–50% on fixtures because they carry the warranty and responsibility if the product fails. When clients supply their own fixtures, charge a premium labor rate to compensate for the missing material revenue.