ESTIMATED
$0.00
Monthly Profit
- Margin
- 0.0%
- Labor Hours
- 0.0 hrs
- Total Cost
- $0.00
FREE COMMERCIAL CLEANING TOOL
Commercial Cleaning Margin Drift Calculator
Compare your original labor estimate with actual contract performance and see how the difference affected your profit margin.
MARGIN DRIFT
On estimate
0.0 pts
0.0% estimated → 0.0% actual
ACTUAL
$0.00
Monthly Profit
- Margin
- 0.0%
- Labor Hours
- 0.0 hrs
- Total Cost
- $0.00
WHAT CHANGED
Variance Breakdown
Labor Hours
0.0 hrs
0.0%
Labor Cost
$0.00
Other Costs
$0.00
Total Cost
$0.00
Actual other costs were left blank, so this analysis assumes they stayed the same as estimated.
Monthly Profit Impact
$0.00
Annualized Impact
$0.00
If the same monthly variance continues for 12 months.
SMART INSIGHT
Actual performance is closely aligned with the original estimate.
Original estimate was below break-even
The original estimate was already unprofitable before actual performance is considered.
Account is operating at a loss
GO BEYOND ONE MONTH
One month shows what changed. Track what happens next.
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MARGIN DRIFT BASICS
What Is Margin Drift in a Commercial Cleaning Contract?
Margin drift is the difference between the profit margin expected when a cleaning account was estimated and the margin produced by the actual performance of that account.
If actual labor hours or other account costs come in above the original estimate while contract revenue stays the same, the actual profit margin can fall below the estimated margin. That is margin erosion.
Margin drift can also be positive. If actual costs come in below the estimate, the account can produce a higher margin than originally expected.
ESTIMATE VS. ACTUAL
Why Estimate vs. Actual Performance Matters
A commercial cleaning bid is built using assumptions about the account. Labor hours and costs are estimated before the work is performed.
Once the account is operating, actual labor hours and actual costs show what really happened. Comparing those numbers with the estimate helps reveal whether the original assumptions held up in practice.
The question is not only whether the account is profitable. It is also whether actual performance stayed aligned with the numbers used when the account was priced.
LABOR VARIANCE
How Labor Hour Variance Changes Profitability
Labor Hour Variance
Actual Labor Hours − Estimated Labor Hours
Illustrative example
Estimated labor hours
119 hrs
Actual labor hours
132 hrs
Labor hour variance
+13 hrs
At $23 loaded labor cost / hour
+$299 labor cost
Example only. Use your own labor-hour and labor-cost assumptions when evaluating an account.
MARGIN CALCULATION
How Margin Drift Is Calculated
Estimated Margin
Estimated Profit ÷ Revenue
Actual Margin
Actual Profit ÷ Revenue
Margin Drift
Actual Margin − Estimated Margin
If an account moves from a 24.4% estimated margin to an 18.3% actual margin, the margin drift is approximately -6.1 percentage points.
Percentage points describe the difference between two margin percentages. They are not the same as calculating a percentage change between the two values.
WHAT CAN CHANGE
Labor Variance Is Not the Only Cause of Margin Drift
Labor Hours
The account may take more or fewer paid labor hours than the original estimate assumed.
Labor Cost
The labor-cost assumption used in the estimate can affect how additional or reduced hours change profitability.
Other Account Costs
Recurring non-labor account costs can also differ from the values used in the original estimate.
MARGIN EROSION
What Margin Erosion Can Tell You
Negative margin drift means the actual margin is below the margin originally estimated for the account.
That difference can be a signal to review the assumptions behind the estimate, including labor hours, loaded labor cost, and other recurring account costs.
If you need to calculate the labor cost per paid hour you want to use in an estimate, start with the Commercial Cleaning Labor Cost Calculator .
FROM ESTIMATE TO REALITY
A Simple Commercial Cleaning Pricing Workflow
01
Labor Cost Calculator →
02
Bid Calculator →
Know Your Labor Cost
Calculate the loaded labor cost per paid hour using your own wage and payroll burden assumptions.
Build the Bid
Combine labor with the other account assumptions used in a commercial cleaning pricing scenario.
03
Margin Drift Calculator
Compare Estimate With Actual
Measure how actual labor and account costs changed profit and margin.
FAQ
Commercial Cleaning Margin Drift Calculator FAQ
What is margin drift?
Margin drift is the difference between the profit margin expected in an estimate and the margin produced by actual account performance.
Is margin drift the same as profit margin?
No. Profit margin describes profit as a share of revenue. Margin drift describes the difference between an estimated margin and an actual margin.
What can cause margin erosion in a cleaning contract?
Margin erosion can result when actual costs are higher than the assumptions used in the estimate. Labor-hour variance, labor cost, and other account costs can all contribute.
Should I compare estimated and actual labor hours?
Comparing estimated and actual labor hours can show whether the workload performed matched the labor assumption used when the account was priced.
Can margin drift be positive?
Yes. If actual performance produces a higher margin than the original estimate, margin drift is positive.
Does this calculator track contracts over time?
No. This free calculator analyzes one estimate-versus-actual scenario at a time. ContractGauge is designed for the broader workflow of bidding, contracts, actual costs, and ongoing profitability.