This article was written by our expert who is surveying the carpentry industry and constantly updating the business plan for a carpenter.
Below you’ll find clear, data-driven answers about a carpenter’s average revenue, profits, and margins as of October 2025.
The figures consolidate current benchmarks for solo carpenters and small carpentry businesses (under five employees) in developed markets, with explicit assumptions so you can plan your pricing and costs with confidence.
If you want to dig deeper and learn more, you can download our business plan for a carpenter. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our carpenter financial forecast.
Independent carpenters commonly generate $56,000–$75,000 per year, while small teams take in roughly $144,000–$216,000 annually, with 60–70% of revenue from residential work. Typical gross margins land at 30–40% and net margins at 10–20% when overhead is controlled.
Materials usually absorb 25–40% of revenue and labor 25–35%, so disciplined estimating, pass-through pricing, and schedule control are essential to protect margins in a market affected by material price swings and steady renovation demand.
| Metric (Oct 2025) | Typical Value | What it means for a carpenter |
|---|---|---|
| Solo annual revenue | $56k–$75k | Achievable with consistent residential jobs; increase via upsells and higher-value cabinetry/renovations. |
| Small team revenue (yr.) | $144k–$216k | Teams under 5 staff typically bill $12k–$18k monthly with steady pipeline management. |
| Residential share of revenue | 60–70% | Most small shops rely on homeowners; commercial adds fewer but larger jobs. |
| Gross margin (after direct costs) | 30–40% | Target this range by marking up materials and estimating labor precisely. |
| Net margin (after overhead) | 10–20% | Requires tight fixed-cost control (rent, insurance, vehicles, marketing). |
| Materials as % of revenue | 25–40% | Use supplier terms and waste reduction to hold the line when prices rise. |
| Labor as % of revenue | 25–35% | Balance in-house vs. subcontracting; maintain productivity per billable hour. |
What is the average annual revenue for an independent carpenter today?
Most independent carpenters earn $56,000–$75,000 per year in developed markets.
This level assumes steady residential demand, consistent quoting, and 46–48 working weeks. You lift above $75,000 by specializing (e.g., cabinetry, built-ins) and tightening job sequencing to reduce idle days.
Margin discipline matters: mark up materials, charge for design time, and bill minimum service calls to protect effective hourly rates. Add maintenance contracts for landlords or property managers to smooth seasonality.
You’ll find detailed market insights in our carpenter business plan, updated every quarter.
Set a clear revenue target per week (e.g., $1,400–$1,600) and work backward to daily quotas.
What revenue range is typical for small carpentry businesses with fewer than five employees?
Small teams usually generate $12,000–$18,000 per month, or $144,000–$216,000 annually.
The lower end reflects two producers plus an owner-operator; the upper end assumes 3–4 billable carpenters at good utilization. Smooth scheduling, reliable subcontractors, and quick change-order approvals keep monthly totals consistent.
Standardize quoting templates, enforce deposits (30–50%), and use progress billing on jobs over two weeks to stabilize cash flow. Track utilization weekly (billable hours ÷ available hours) to keep it above 75%.
This is one of the strategies explained in our carpenter business plan.
Plan capacity in two-week blocks to avoid overcommitment and margin erosion.
How much revenue typically comes from residential versus commercial work?
For small carpentry operations, 60–70% of revenue usually comes from residential clients and 30–40% from commercial contracts.
Residential offers more frequent jobs and faster decisions; commercial brings larger tickets but longer lead times and stricter compliance. Your mix depends on specialization and local construction cycles.
| Segment | Share of Revenue | Implications |
|---|---|---|
| Residential (homeowners, landlords) | 60–70% | Shorter jobs, quicker quotes, strong renovation demand; price sensitivity varies by neighborhood. |
| Commercial (offices, retail, hospitality) | 30–40% | Fewer but larger jobs, RFPs/specs, insurance and permitting requirements increase admin time. |
| New build (GC subcontract) | 10–25% of total mix | Schedule-driven, tighter margins, valuable for volume and referrals. |
| Renovations | Core driver | High variability; win with accurate site measures and dust/containment protocols. |
| Maintenance/repairs | 5–15% | Stabilizes workflow; bundle into service agreements with property managers. |
| Custom cabinetry/furniture | 10–30% | Higher ASPs; requires precise lead times and showroom-grade samples. |
| Insurance/claims work | Occasional | Documentation heavy; ensure pricing covers admin and rework risk. |
What is the average gross profit margin for carpentry after direct costs?
Gross margin typically lands between 30% and 40% once you deduct materials and subcontractors.
Hit the top of the range by quoting firm material markups (e.g., 20–30%), reducing waste, and slotting repeatable jobs. Use takeoff checklists to catch hardware and finish items that often go unbilled.
On commercial jobs, require written change orders, and lock supplier pricing when possible. Track variance per job to learn which scopes consistently beat estimates.
We cover this exact topic in the carpenter business plan.
Set a minimum gross margin threshold (e.g., 35%) and walk away from jobs that cannot meet it.
What net profit margin is common after overhead (rent, insurance, vehicles, marketing)?
Well-managed carpentry businesses net 10–20% after overhead.
To stay above 15%, keep fixed costs lean, price for travel/setup time, and maintain a two-month pipeline. Review overhead allocation by crew to ensure each team covers its share of rent, utilities, and admin.
Implement monthly budget vs. actuals and renegotiate insurance and vehicle terms annually. Use a costed calendar (revenue targets by week) to know when to add headcount.
It’s a key part of what we outline in the carpenter business plan.
Consistent quoting discipline and schedule control are the levers that preserve net margin.
What fixed costs most affect a carpenter’s profitability?
- Workshop rent or mortgage: typically the largest fixed cost; consider shared space or phased upgrades.
- Insurance (general liability, tools, vehicles): shop around each renewal; bundle policies to reduce premiums.
- Vehicle payments, fuel, and maintenance: optimize routing and keep accurate mileage logs for billable travel.
- Equipment depreciation and maintenance: schedule preventative service to avoid downtime on saws and dust systems.
- Utilities (electricity for machines, HVAC), software, bookkeeping, and basic admin labor.
What share of revenue is typically spent on raw materials, and how does it affect margins?
Materials usually consume 25–40% of revenue in carpentry.
The exact share shifts with scope (solid wood vs. sheet goods, hardware intensity) and market prices. You protect margins by quoting with current supplier bids, marking up at least 20–30%, and specifying alternates when prices spike.
Standardize cut lists, optimize sheet yields, and maintain off-cut inventory for small jobs. Negotiate volume discounts or early-pay terms with key suppliers.
Get expert guidance and actionable steps inside our carpenter business plan.
Update your price book monthly when markets are volatile.
How much of revenue goes to labor (wages and subcontractors)?
Labor generally runs 25–35% of revenue for small carpentry teams.
Keep it in range by measuring productivity per billable hour, assigning helpers strategically, and using subs only where they add speed or specialization. Track loaded labor cost (wages + taxes/benefits) to price correctly.
Adopt timeboxing on site, daily starts, and standard toolkits per crew to reduce setup time. Incentivize crews on on-time milestones rather than just hours worked.
This is one of the many elements we break down in the carpenter business plan.
Labor discipline is the main guardrail for net margin.
What revenue per project is standard now for common carpentry jobs?
Most residential carpentry jobs fall between $1,500 and $3,500, with a broader range of $300–$5,000 depending on scope.
Custom cabinetry and full-room built-ins skew higher; minor repairs and trim jobs sit at the low end. Use tiered pricing (basic, standard, premium) to anchor value and upsell finishes and hardware.
| Project Type | Typical Project Revenue | Notes for a carpenter |
|---|---|---|
| Custom built-ins (living/office) | $3,000–$5,000+ | High ASP; detail design time separately; lead with samples and 3D visuals. |
| Kitchen cabinetry (partial) | $2,500–$4,500 | Hardware and finish choices drive price; plan for site protection and dust control. |
| Renovation trim/finish | $1,500–$3,000 | Profit depends on accurate takeoffs and minimal rework. |
| Door/hardware packages | $900–$2,000 | Bundle multiple units; pre-stage hardware to cut install time. |
| Repairs/minor works | $300–$900 | Use minimum call-out fees and same-day invoicing. |
| Custom furniture (single piece) | $1,800–$4,000 | Premium woods and finishes justify higher markups; longer lead times. |
| Commercial millwork (small) | $4,000–$10,000 | Compliance and submittals add admin; price for documentation time. |
What break-even revenue should a new carpenter expect?
Many new carpentry businesses need around $20,000 per month to break even, depending on local costs and startup spend.
This assumes fixed costs near $2,000–$4,000 per month and variable costs in line with 30–40% materials and 25–35% labor. Your exact break-even changes with rent, tooling finance, and crew size.
Model three cases (conservative, base, stretch) and revisit after your first 8–12 signed jobs. Build a recurring maintenance line (e.g., property managers) to cover a predictable portion of fixed costs.
You’ll find detailed market insights in our carpenter business plan, updated every quarter.
Use deposits and progress billing to stay cash-positive on day one.
What ROI benchmarks apply to tools, machines, and workshop investments?
Carpentry shops generally target a 2–4 year payback on major equipment, equating to a 15–30% annual ROI.
Outlays of $10,000–$50,000 for essential machines and setup are common; ROI hinges on utilization and premium work enabled. Track machine-driven revenue (jobs only possible with that tool) to validate returns.
| Investment | Typical Cost | ROI / Payback Guidance |
|---|---|---|
| Cabinet saw + outfeed | $2,500–$5,000 | Payback in 18–36 months via faster, safer ripping and reduced rework. |
| Track saw & dust extraction | $800–$2,000 | Rapid onsite sizing; improves finish quality; ideal for residential installs. |
| Planer/jointer combo | $2,000–$4,000 | Enables premium solid-wood jobs; price for surface prep time. |
| Edge bander (entry) | $6,000–$12,000 | Unlocks higher-margin cabinetry; charge for material and setup waste. |
| Spray system/booth | $3,000–$15,000 | Improves finish speed/quality; leads to premium packages and referrals. |
| Shop fit-out (benches, clamps) | $2,000–$6,000 | Productivity uplift across all jobs; low break-even threshold. |
| Vehicle & racking | $12,000–$35,000 | Quote travel and handling; increases daily job count and ASP opportunities. |
How have material price swings and demand trends affected revenue, profits, and margins?
Rising lumber and hardware costs have pressured gross margins, but firms that adjust quotes quickly have maintained revenue growth.
Renovation demand remains resilient, supporting stable pipelines for residential carpenters; commercial work varies with local project cycles. Strong change-order discipline and pass-through pricing keep margins within target ranges.
Build supplier relationships for priority stock and use alternates when specified brands surge. Update estimates with live prices and include validity windows (e.g., 15–30 days) to limit exposure.
This is one of the strategies explained in our carpenter business plan.
Educate clients about allowances and lead times to avoid margin-killing surprises.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Looking to plan your costs to become a carpenter? Start with training, certification, and tool budgets that fit your market.
Need a marketing plan for your carpentry business? Build a pipeline using local SEO, referral systems, and before/after portfolios.
Sources
- InvoiceFly – How much do carpenters make?
- DojoBusiness – Carpenter profitability
- Inside Advisor Pro – Commercial vs Residential Construction
- Starter Story – Woodworking business profitability
- IBISWorld – Carpenters in the US
- ServiceTitan – Residential vs Commercial Construction
- DojoBusiness – Carpenter business plan
- Businessplan-templates – Carpentry running costs
- Gig Worker Solutions – Self-employed carpenter income
- LivePlan – Carpenter sample business plan
