Owner-Operator
Compensation Benchmark
$85K – $115K
Industry data hub · 2025–2026 · 380+ plumbing businesses
Owner pay typically runs $85K–$165K (median ~$125K) — and a median plumbing business can be worth $700K–$1.1M. See 2026 income, profit, and valuation benchmarks.
Industry Intelligence
Overall
Solid
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AverageSource: BizMetricsHQ 380+ plumbing businesses (2025–2026). Methodology
What makes plumbing economics different from other home service trades.
Plumbers net worth is usually two numbers: owner compensation ($85K–$165K typical, median ~$125K) plus the equity in the shop. A median plumbing business near $320K SDE often values around $700K–$1.1M at ~2.8× — far more than wage-only comparisons suggest.
Plumbing businesses benefit from non-discretionary demand because water, sewer, and pipe failures require immediate repairs — homeowners and businesses cannot defer most plumbing emergencies.
Unlike many construction-related trades, plumbing companies generate significant revenue from emergency service calls, which often command premium pricing and after-hours rates.
Commercial maintenance contracts and service agreements can create recurring revenue streams and improve business stability, especially for operators serving property managers and multi-family accounts.
Labor availability remains a major growth constraint for many operators. Companies that invest in apprentice pipelines, competitive compensation, and dispatch efficiency tend to scale faster than peers.
Annual revenue percentiles for owner-operated plumbing companies.
| Percentile | Annual Revenue |
|---|---|
| 25th | $800K |
| Median | $1.6M |
| 75th | $2.2M |
| Top 10% | $3.5M+ |
Distribution: 25th $800K · Median $1.6M · 75th $2.2M.
Emergency Repairs
Burst pipes, leaks, and urgent failures with premium pricing
20 – 35%
Residential Service
Repairs, fixture installs, and repipe work for homeowners
35 – 50%
Commercial Service
Building maintenance, backflow, and commercial plumbing
20 – 35%
Drain Cleaning
High-frequency service with strong route density economics
12 – 22%
Water Heater Installations
Replacement and upgrade projects with solid ticket size
10 – 18%
Maintenance Contracts
Annual service agreements and PM for commercial accounts
10 – 25%
What is the average plumbing profit margin — and how much profit does a plumbing company make?
Are plumbing companies profitable? Yes — healthy operators keep 8 – 15% net profit, median ~11%.
Average plumbing profit margin
8 – 15% net
Median ~11%
Typical annual profit
$130K – $240K
At $1.6M revenue
Top-quartile profitability
16 – 20% net
Strong operators
How profitable is a plumbing business? Typically 8 – 15% net margin (median ~11%). Top operators reach 16 – 20%.
What is the average plumbing profit margin? About 11% net; healthy range 8 – 15%. Gross margin usually 45 – 55%.
Are plumbing companies profitable? Yes, when plumber payroll and materials stay in benchmark ranges. Below-range margins usually signal cost drift.
How much profit does a plumbing company make? About $130K – $240K a year at median $1.6M revenue (~$176K at 11% net).
Net margin distribution
Below Average
4 – 7%
Average
8 – 11%
Good
12 – 14%
Top Performer
15 – 18%
| Metric | Value |
|---|---|
| Gross Margin | 42 – 52% |
| Net Margin | 8 – 14% |
| Owner Salary (normalized) | $85K – $165K |
| Expense Category | % Revenue |
|---|---|
| Plumber Payroll | 30 – 40% |
| Materials & Parts | 16 – 24% |
| Vehicle Fleet | 5 – 9% |
| Marketing | 6 – 10% |
| Office & Admin | 8 – 12% |
| Insurance | 4 – 8% |
Owner compensation is half the story — typical pay is $85K–$165K (median ~$125K). Business equity is the other half.
Owner-Operator
Compensation Benchmark
$85K – $115K
Small Team Owner
Compensation Benchmark
$115K – $145K
Established Business
Compensation Benchmark
$145K – $185K
Multi-Location Business
Compensation Benchmark
$185K – $320K+
SDE, EBITDA, and revenue multiples — a median shop near $320K SDE often lands around $700K–$1.1M.
SDE Multiple
2.2× – 3.5×
EBITDA Multiple
3.5× – 5.5×
Revenue Multiple
0.5× – 0.9×
Quick SDE-based valuation using industry multiples.
Estimated Value
$896,000
Range: $704,000 – $1,120,000
At 2.8× SDE on $320,000 SDE
SDE-Based Value
$896,000
Revenue-Based Value
$1,120,000
Example: $1.6M revenue · $320K SDE → ~$896K value at 2.8× SDE
Practices that separate high-performing plumbing companies from the median operator.
Growth drivers for plumbing operators.
Headwinds to monitor when planning growth.
Relative plumbing revenue performance — no separate state pages yet.
| State | Relative Revenue | Notes |
|---|---|---|
| Texas | Above Average | Population growth, new construction, strong emergency demand |
| Florida | Above Average | Retirement migration, humidity-related plumbing issues |
| California | Average | High revenue potential, elevated labor and regulatory costs |
| Arizona | Above Average | Rapid housing growth, hard water and repipe demand |
| Georgia | Above Average | Southeast expansion, mixed residential/commercial |
| Ohio | Average | Stable demand, aging housing stock, moderate competition |
See how plumbing economics stack up against related trades.
Run the numbers on plumber productivity, profit margin, valuation, and break-even.
Measure plumber productivity and revenue per tech.
Open calculatorCalculate net margin and compare to plumbing benchmarks.
Open calculatorEstimate required revenue and jobs to break even.
Open calculatorEstimate plumbers' business net worth using SDE multiples.
Open calculatorTypical investment ranges for launching a plumbing company.
Vehicles & Equipment
$60K – $150K
Inventory & Tools
$30K – $80K
Marketing Launch
$20K – $50K
Working Capital
$40K – $100K
Total startup range: $150K – $400K · Varies by fleet size, licensing, and market entry strategy.
Typically 8 – 15% net margin (median ~11%). Top operators reach 16 – 20%.
About 11% net; healthy range 8 – 15%. Gross margin usually 45 – 55%.
Yes — when plumber payroll and materials stay in benchmark ranges. Thin margins usually signal cost drift.
About $130K – $240K a year at median $1.6M revenue (~$176K at 11% net).
Plumbers net worth varies widely. Owner-operators typically earn $85K–$165K in annual compensation (median ~$125K). On top of income, a median plumbing business with ~$320K SDE often sells near 2.8× — roughly $700K–$1.1M in business equity. Multi-crew owners combining salary and distributions can clear $185K–$320K+ a year, which compounds net worth faster when the shop is transferable.
Most plumbing owners build net worth from two buckets: take-home pay ($85K–$165K typical) and business equity (often $700K–$1.1M at median SDE multiples). Top multi-location operators can exceed $320K annual earnings with shops valued well over $1M.
The median owner-operated plumbing company generates about $1.6M in annual revenue. The interquartile range spans $800K (25th percentile) to $2.2M (75th percentile), with top-performing companies exceeding $3.5M. Revenue varies based on plumber count, service area, and emergency vs contract mix.
Plumbing business owners typically earn $85K–$165K in total compensation, with a median around $125K. Owner-operators often earn $85K–$115K, while established multi-crew operators can exceed $320K when combining owner salary and profit distributions.
Plumbing businesses typically sell at 2.2×–3.5× SDE, with a median near 2.8×. A company with $1.6M revenue and $320K SDE might value between $704K and $1.12M. Companies with commercial contracts and transferable management often command premium multiples.
At median productivity of ~$215K revenue per plumber, reaching $1M typically requires 4–5 full-time plumbers plus owner production. High-performing shops with strong emergency tickets and route density can reach $1M with 3–4 plumbers; lower-ticket operators may need 5–6.
Plumbing is highly recession-resistant. Water and sewer failures require immediate repair regardless of economic conditions, and emergency calls often increase as deferred maintenance catches up. Companies with commercial maintenance contracts add stability during construction slowdowns.
Benchmarks and economics for related trades.
380+ plumbing businesses · U.S. data · Methodology