Thinking about starting a plumbing business—or wondering if your current one is on track? You’re not alone. Many aspiring and current plumbing entrepreneurs ask: “How much does a plumbing business make a year?” The answer isn’t one-size-fits-all—but with the right strategy, location, and service mix, plumbing can be a highly profitable trade. Let’s break down the numbers, factors, and real-world insights to give you a clear picture.
What Is the Average Annual Income of a Plumbing Business?
According to the U.S. Bureau of Labor Statistics (BLS), the median annual wage for plumbers, pipefitters, and steamfitters was $60,090 in 2023. But that’s for employees, not business owners.
For plumbing business owners, income varies widely based on scale, location, and services offered:
- Solo plumber (self-employed): $50,000 – $90,000/year
- Small plumbing company (2–5 employees): $100,000 – $250,000/year net profit
- Mid-sized plumbing business (6–20 employees): $250,000 – $750,000+/year
- Large regional firms: Can exceed $1 million in annual profit
Source: HomeAdvisor, IBISWorld, and industry surveys (2023–2024)
Keep in mind: Revenue ≠ Profit. A plumbing business might generate $500,000 in revenue but net $120,000 after expenses like labor, vehicles, insurance, and marketing.
What Factors Influence a Plumbing Business’s Earnings?
Several key variables determine how much your plumbing business earns annually:
1. Geographic Location
Plumbers in high-cost-of-living states (e.g., California, New York, Massachusetts) often charge 20–40% more per job than those in rural or low-demand areas. For example:
- Hourly rates in San Francisco: $120–$200
- Hourly rates in rural Texas: $60–$100
2. Services Offered
Basic drain cleaning pays less than emergency sewer line replacement or commercial plumbing contracts. High-margin services include:
- Water heater installation
- Repiping (whole-house copper or PEX)
- Backflow prevention testing
- Smart plumbing system upgrades
💡 Pro Tip: Adding 24/7 emergency services can increase annual revenue by 15–30%, according to industry reports.
3. Business Model
- Residential-only: Steady but seasonal (busy in winter with frozen pipes, summer with remodels).
- Commercial contracts: Higher ticket sizes, recurring revenue (e.g., maintenance for apartment complexes).
- Hybrid model: Best of both worlds—diversifies income and reduces downtime.
4. Marketing & Online Presence
A plumbing business with strong local SEO, Google Business Profile optimization, and positive reviews can earn 2–3x more than competitors with poor online visibility. In fact, 76% of local service searches lead to a call or visit within 24 hours (Google, 2024).
Real-World Case Study: From Solo Plumber to $500K Business
Meet Carlos R., a licensed plumber in Phoenix, Arizona. He started solo in 2019 with one van and a basic website.
- Year 1: $78,000 revenue → $32,000 net profit
- Year 3: Hired 2 technicians, added water heater and leak detection services
- Year 5 (2024): $620,000 revenue → $185,000 net profit
His secret? Niche specialization (tankless water heaters) + Google Ads + 5-star review strategy. He now ranks #1 for “emergency plumber Phoenix” and charges premium rates.
Plumbing Business Revenue vs. Profit: What’s the Difference?
Many confuse gross revenue with take-home profit. Here’s a realistic breakdown for a small plumbing business earning $400,000/year in revenue:
| Technician wages | $150,000 |
| Vehicle maintenance | $12,000 |
| Insurance (liability, workers’ comp) | $8,000 |
| Marketing (SEO, ads, print) | $15,000 |
| Tools & supplies | $10,000 |
| Software (scheduling, invoicing) | $2,400 |
| Taxes & fees | $40,000 |
| Total Expenses | $237,400 |
| Net Profit | $162,600 |
⚠️ Note: Profit margins in plumbing typically range from 25% to 40% for well-run businesses. Poorly managed operations may dip below 15%.
For more on business structures and tax implications, see the Wikipedia page on sole proprietorships vs. LLCs .
How to Increase Your Plumbing Business Income (Step-by-Step)
Want to boost your annual earnings? Follow this actionable roadmap:
- Get Licensed & Insured
Operating legally builds trust and allows you to bid on commercial jobs. Most states require a plumbing contractor license for businesses with employees. - Specialize in High-Demand Services
Focus on 2–3 profitable niches (e.g., slab leak detection, bathroom remodels, gas line installation). - Optimize Your Online Presence
- Claim and verify your Google Business Profile
- Collect 25+ 5-star reviews
- Publish blog content targeting local keywords like “burst pipe repair [City]”
- Implement Tiered Pricing
Offer basic, standard, and premium service packages. Example:- Basic drain cleaning: $99
- Standard (with camera inspection): $179
- Premium (same-day + warranty): $249
- Upsell Maintenance Plans
Sell annual plumbing inspection plans ($199/year). These create recurring revenue and reduce customer churn. - Track KPIs Monthly
Monitor:- Average ticket size
- Customer acquisition cost (CAC)
- Technician utilization rate
Pros vs. Cons of Owning a Plumbing Business
| High demand (essential service) | Physically demanding work |
| Low startup costs vs. other trades | Seasonal fluctuations (in some regions) |
| Scalable (add vans, crews, services) | Licensing and regulatory hurdles |
| Recession-resistant industry | High insurance & liability risks |
Despite challenges, plumbing remains one of the most stable small business opportunities in the U.S., especially with aging infrastructure and housing shortages driving demand.
FAQ: How Much Does a Plumbing Business Make a Year?
Q1: Can a plumbing business make $200,000 a year in profit?
Yes. A well-managed plumbing business with 3–5 technicians in a metro area can easily net $150,000–$300,000 annually after expenses, especially if it offers emergency or commercial services.
Q2: How long does it take to become profitable?
Most plumbing businesses break even within 6–18 months. Success depends on startup costs, marketing effectiveness, and local competition.
Q3: Do I need a license to start a plumbing business?
Yes, in most states. Requirements vary, but typically include 2–5 years of experience, passing a trade exam, and carrying liability insurance. Check your state’s contractor licensing board.
Q4: What’s the biggest expense for plumbing businesses?
Labor is usually the largest cost, followed by vehicle maintenance and marketing. Efficient scheduling and route optimization can reduce both.
Q5: Is plumbing a good business to start in 2025?
Absolutely. The U.S. faces a plumber shortage, with the BLS projecting 5% job growth (2022–2032). Combined with rising home repair needs and infrastructure upgrades, demand is strong.
Q6: How much should I charge per hour?
Residential plumbers typically charge $75–$150/hour in 2025. Commercial rates can exceed $200/hour. Always factor in overhead—your true hourly cost is likely $50–$70 before profit.
Conclusion
So, how much does a plumbing business make a year? Realistically, anywhere from $50,000 to over $1 million, depending on your strategy, location, and execution. With low entry barriers, essential service demand, and strong profit potential, plumbing remains a top choice for skilled entrepreneurs.
If you found this guide helpful, share it with a friend considering a trade business—or tag a future plumbing mogul on social media! 💧🔧
Got questions about starting your own plumbing company? Drop them in the comments below—we’re here to help you succeed.
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