What Is My Cleaning Business Worth?

Cleaning businesses — residential, commercial, and janitorial — are among the most commonly sold small businesses. The low barrier to entry makes the industry competitive, but well-run cleaning companies with recurring contracts and reliable teams are genuinely valuable.

Here's how to understand what your cleaning business is worth.

Typical Valuation Ranges

Most cleaning businesses sell for 2x to 3.5x SDE. Commercial cleaning and janitorial companies with long-term contracts can push toward 3x to 5x EBITDA when selling to PE-backed platforms or regional consolidators.

Factors that push toward the higher end:

• Long-term commercial contracts (1–3 year terms)
• Diversified customer base (no client over 10% of revenue)
• Reliable, trained workforce with low turnover
• Revenue above $500K with consistent growth
• Recurring residential clients on weekly/biweekly schedules
• Systems and processes documented (not owner-managed)

Factors that push toward the lower end:

• Owner handles cleaning, scheduling, and sales personally
• Revenue dependent on one-time or project-based jobs
• High customer concentration (one account is 20%+ of revenue)
• Difficulty retaining cleaning staff
• No contracts — month-to-month arrangements only
• Cash-heavy business with poor financial records

Commercial vs. Residential

Commercial cleaning companies generally command higher multiples because they have contracts, predictable revenue, and larger deal sizes. A janitorial company with 20 commercial accounts on 2-year contracts is a very different business than a residential cleaner managing individual house cleanings.

Residential cleaning businesses can still be valuable, especially franchises or companies with hundreds of recurring weekly clients. The key is volume and systems — if every client is managed through software with assigned crews and repeating schedules, there's real transferable value.

Key Metrics Buyers Evaluate

Contract Revenue Percentage

The more revenue under contract, the better. Buyers want to see 60%+ of revenue on recurring contracts for commercial operations. For residential, recurring weekly/biweekly clients serve the same purpose.

Customer Retention Rate

Cleaning businesses live and die on retention. A 90%+ annual retention rate signals quality service and strong relationships. Below 80% raises concerns.

Employee Turnover

The cleaning industry has notoriously high turnover. Companies that have cracked the retention code — through better pay, benefits, or culture — are worth significantly more.

Revenue Per Employee

This measures efficiency and pricing power. Strong cleaning companies generate $40K–$60K+ in revenue per field employee annually.

Gross Margins

Healthy cleaning companies run 40–55% gross margins (revenue minus direct labor and supplies). Below 35% suggests pricing or efficiency issues.

How to Increase Your Cleaning Business's Value

1. Move to contracts. Convert month-to-month clients to annual agreements with auto-renewal. Even simple contracts dramatically improve your valuation.
2. Diversify your client base. No single client should represent more than 10% of revenue. If one does, aggressively grow other accounts.
3. Invest in your team. Better pay, training, and career paths reduce turnover. A stable, trained crew is your most important asset.
4. Document your operations. Checklists, training materials, quality inspection processes, scheduling systems. Make the business transferable.
5. Build online presence. Reviews matter for residential. Commercial prospects check you out too. Build your Google and social proof.
6. Track your numbers. Revenue per client, cost per clean, customer acquisition cost, retention rate. Data-driven operations get higher multiples.

Ready to Find Out What Your Cleaning Business Is Worth?

Browse the valuation multiples guide for current industry data, or schedule a free call for a confidential valuation.