What is the average profit margin for a roofing company?

According to the NRCA, the average roofing contractor nets approximately 2.8%. Gross profit margins typically range from 20-40%, with well-run operations achieving 55-65%. Strong performers can net 12-15% after all expenses. The wide range reflects differences in crew efficiency, material procurement, and overhead management.

What is a good close rate for a roofing company?

A healthy close rate for residential roofing companies is 30-50%. This means converting 3-5 out of every 10 estimates into signed contracts. Top performers achieve 40-50% by qualifying leads before estimating, following up within 24 hours, and presenting clear value propositions. Track close rate weekly by salesperson to identify coaching opportunities.

How do I reduce labor costs as a percentage of revenue in roofing?

Target labor at 25-35% of revenue. Reduce it by: (1) tracking labor hours per square of roofing installed, (2) investing in crew training to improve speed without sacrificing quality, (3) scheduling jobs to minimize drive time between sites, (4) using piece-rate pay structures where appropriate, and (5) monitoring overtime carefully. Even a 2-3% reduction in labor percentage can add $20,000-$50,000 to annual profit for a $1M roofing company.

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Roofing Company KPI Dashboard

Track the 5 most critical metrics for small-crew residential roofing companies

Period

Close Rate

44.4%

Target: 30-50%

On Target

Gross Profit Margin

66.7%

Target: 55-65%

Healthy Margin

Labor % of Revenue

22.2%

Target: 20-25%

Efficient

Overhead % of Revenue

26.7%

Target: 35-45%

Controlled

Net Profit Margin

17.8%

Target: 15-20%

Excellent

Enter Your Weekly / Monthly Data

Leads Received

Estimates Given

Jobs Sold

Revenue

Job Costs — Materials, Subs, Permits

Direct Labor — Field Crew Wages + Taxes

Overhead — Rent, Office, Insurance, Trucks

Jobs Completed

How to Track Each KPI

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Track every metric that matters for your roofing business

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