Cleaning & janitorial
Cleaning Recurring Revenue Calculator
Model the recurring base of the business against one-off work.
Result
Agreements often earn little on the fee alone. They are worth having for the access, the retention and the work members buy without shopping around, so judging them on the fee margin alone undervalues them.
Get a Free Business AuditWhat moves the number
- Contracted or scheduled recurring value per month.
- Retention, which is what makes recurring revenue valuable.
- Cleaner capacity, since every recurring customer is a scheduled obligation.
Where this one goes wrong
Growing the recurring base beyond cleaner capacity. Every recurring customer expects a specific slot, and overselling produces missed visits, which produces cancellations.
Questions
About this calculator
Why is recurring revenue so valuable in cleaning?
It makes staffing and scheduling predictable, which in a business constrained by labour is worth more than the revenue itself.
What is a good retention rate?
Measure your own and watch the trend. Domestic cleaning churn is normal; a rising rate is the signal worth acting on.
What is the risk?
Capacity. A recurring book larger than your reliable cleaner capacity turns into missed visits, and missed visits lose customers permanently.
The formula
recurring revenue = members x annual fee; total profit adds the margin on pull-through work
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How to use this calculator
- Agreements in force. Enter your own figure; the page starts at 180.
- Annual fee ($). Enter your own figure; the page starts at $2,340.
- Cost to deliver one ($). Enter your own figure; the page starts at $1,400.
- Renewal rate (%). Enter your own figure; the page starts at 76%.
- Extra work per member per year ($). Repairs and replacements members buy because you are already there.
- Margin on that work (%). Enter your own figure; the page starts at 42%.
The result updates as you type, so you can try a figure, see what it does to recurring revenue, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Agreements in force | 180 |
| Annual fee | $2,340 |
| Cost to deliver one | $1,400 |
| Renewal rate | 76% |
| Extra work per member per year | $190 |
| Margin on that work | 42% |
What comes out
| Result | Value |
|---|---|
| Recurring revenue main result | $421,200 |
| Profit on the agreements | $169,200 |
| Profit on pull-through work | $14,364 |
| Total gross profit | $183,564 |
| Members still there next year | 137 |
$421,200 of recurring revenue, earning $169,200 on the agreements themselves and $14,364 on the work members bring back. The second number is usually the reason to sell them.
How sensitive the answer is
Holding everything else steady and changing only annual fee, this is what happens to recurring revenue. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Annual fee ($) | Recurring revenue |
|---|---|
| $1,170 | $210,600 |
| $1,755 | $315,900 |
| $2,340 example above | $421,200 |
| $3,510 | $631,800 |
| $4,680 | $842,400 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Agreements in force
- A number, between 0 and 100000, starting at 180.
- Annual fee ($)
- A money amount, starting at $2,340.
- Cost to deliver one ($)
- A money amount, starting at $1,400.
- Renewal rate (%)
- A percentage, between 0 and 100, starting at 76%.
- Extra work per member per year ($)
- Repairs and replacements members buy because you are already there.
- Margin on that work (%)
- A percentage, between 0 and 95, starting at 42%.
What the results tell you
| Result | What it is |
|---|---|
| Recurring revenue | The headline result. A money figure. |
| Profit on the agreements | A money figure. |
| Profit on pull-through work | A money figure. |
| Total gross profit | A money figure. |
| Members still there next year | A number. |
Time is the variable that bites
Pricing that works out on paper fails when the job takes longer than quoted. First cleans, heavily soiled sites and access problems all run over, so it is worth pricing the first visit separately from the recurring one.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.