Business Model · Home & Trade Services

The Roofing Company

A high-ticket, storm-driven trade sold one bid at a time. Here is how a roofing company actually pencils: the estimate-to-close funnel, insurance claims and supplements, crew utilization, and why materials at ~40% of the ticket make accurate estimating the line between profit and loss.

15 min experienceInteractive economicsBuilt from BLS & Census data
Read the launch plan: every step from deciding to opening, free →
01

The Snapshot

Is this worth your attention?

$1M to $3M
Typical annual revenue
2-4 crews · high-ticket reroofs & storm work
8% to 15%
Owner cash margin (SDE)
share of sales the owner keeps before their own pay
~$24/hr
Median roofer wage
$50,030/yr (2024)
$122k to $379k
Cost to open
three crews, trucks leased; typical about $128k
Med-High
Day-to-day difficulty
estimating, claims, crews, safety, weather
Low-Med
Absentee potential
systemized with a GM & estimators

Estimated Typical bands for this kind of business, estimated from adjacent public data where no direct benchmark exists; treat them as rough. Estimates, not forecasts; a specific business varies with its location, lease, equipment and owner. Last reviewed 2026-07-07. smbnest is a self-assessment tool, not individualized advice.

A fit if you...

  • Hold or can hire a roofing license and lead a field crew
  • Want an essential, storm-resilient, high-ticket trade
  • Can work insurance claims and supplements, not just retail bids
  • Can estimate accurately and run a bid pipeline

Probably not if you...

  • Want a passive, absentee investment from day one
  • Dislike managing crews, heights, and safety/liability
  • Cannot recruit or retain skilled roofing labor
  • Have no appetite for marketing, storm response, and claims
02

Step Inside the Layout

A live look at one tool inside

This is the actual 3D floor from the full model. Drag to explore it. Inside, you configure the space yourself and watch the economics move with every choice.

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Sources and method14 public sources, with the year and a link where the source gives one. The benchmark bands on this page are estimated from adjacent data and labeled as estimates.

Sources & Method

Figures are estimated from the public sources below and from adjacent data; the bands are labeled as estimates

How these numbers were built: roofer wages come from the BLS OEWS (SOC 47-2181 Roofers, median $50,030/yr / ~$24.05/hr in May 2024); industry structure comes from the U.S. Census Bureau (NAICS 238160 Roofing Contractors); per-company revenue is anchored to a secondary, directional industry estimate (~$1M-$3M for a typical 2-4 crew independent shop); the ~40% materials share follows NerdWallet’s roof replacement cost data (installation labor about 60% of a new shingle roof); financing terms come from the SBA; survival and loan-default signals come from Census/BLS business-dynamics data and published SBA-performance analyses; sale prices and multiples come from BizBuySell’s construction valuation benchmarks; insurance costs come from Insureon and Contractors Liability; and the cost to start is the item-by-item opening kit, priced from dealer listings, licensing boards and insurer data. In the simulator, monthly volume is modeled as projects/crew/week x 4 weeks/month: a crew lays roughly 12 to 24 squares a day on the roof (RoofSnap), so after weather, tear-off and travel a four-roofer crew completes about 1.5 projects per week, and a 3-crew shop pencils to about $2.3M a year. Labor per crew is fully loaded: four roofers at the BLS median wage, workers’ comp at about $20 per $100 of payroll (the national mid-range for roofing class 5551) and about 9% employer payroll taxes (7.65% FICA plus federal and state unemployment tax). The average ticket follows the roughly $10,000 national average for a shingle replacement, lifted by some metal and commercial work; marketing cost per won project is an industry-typical placeholder. Figures are current as of 2024-2026.

Cost ratios and margin range are anchored to the same secondary industry revenue estimate and methodology used elsewhere in this model (typical $1M-$3M shop); the materials share is checked against NerdWallet’s roof replacement cost split; labor figures are sourced to BLS OEWS. The revenue anchor is a directional industry estimate, not a primary government dataset, so it is cited but should be treated as approximate.

Government data
U.S. Bureau of Labor Statistics · 2024
OEWS: Roofers (SOC 47-2181), median $50,030/yr (~$24.05/hr)
https://www.bls.gov/oes/current/oes472181.htm
U.S. Census Bureau · 2022
County Business Patterns: Roofing Contractors (NAICS 238160)
https://www.census.gov/programs-surveys/cbp.html
U.S. Small Business Administration · 2026
7(a) loan program & size standards (specialty trade contractors)
https://www.sba.gov/funding-programs/loans/7a-loans
U.S. Census Bureau (BDS) & BLS Business Employment Dynamics · 2024
New-business 5-year survival rates
https://www.census.gov/programs-surveys/bds.html
Industry
Industry / large-contractor reporting (secondary estimate) · 2024
Typical independent roofing-company revenue ~$1M-$3M for a 2-4 crew shop; materials ~40% of ticket (secondary, directional estimate)
https://www.roofingcontractor.com/
RoofSnap · 2026
How to estimate labor cost for roofing: crews lay 18 to 24 squares a day on simple roofs, 12 to 18 on moderate and 6 to 12 on steep ones; example loaded crew of a foreman and four installers with about 21% payroll burden
https://roofsnap.com/?p=5373
Insureon · 2025
Roofing license requirements by state
https://www.insureon.com/blog/roofing-license-requirements
Market & valuation
Crestmont Capital: analysis of SBA loan performance data · 2026
SBA loan default (charge-off) rates by industry
https://www.crestmontcapital.com/blog/sba-loan-default-rates-by-industry
NerdWallet · 2025
Cost to replace roof shingles: about $10,000 on average; installation labor is about 60% of a new shingle roof, leaving materials near 40%
https://www.nerdwallet.com/article/mortgages/cost-to-replace-roof-shingles
Intuit QuickBooks · 2026
Employer payroll taxes: FICA 7.65% (Social Security 6.2%, Medicare 1.45%); FUTA 0.6% net on the first $7,000; state unemployment 0% to 12% on a state wage base
https://quickbooks.intuit.com/r/payroll/what-is-futa/
BizBuySell · 2025
Construction business valuation benchmarks: median sale about $750k on about $1.5M revenue; median 2.43× SDE, middle half 1.81× to 3.13×; median 207 days on market (sold 2021 to 2025)
https://www.bizbuysell.com/learning-center/valuation-benchmarks/building-construction/
Insureon · 2026
Roofing contractor insurance cost: median premiums by policy (general liability about $3,808 a year, commercial auto about $268 a month, workers’ comp about $2,101 a year for small firms)
https://insureon.com/construction-contracting-business-insurance/roofing/cost
Contractors Liability · 2026
Roofing insurance cost: general liability about 1.5% to 1.75% of revenue; workers’ comp (class 5551) about $15 to $35 per $100 of payroll in most states, with state rates
https://contractorsliability.com/blog/roofing-insurance-cost/
Regulatory
California Contractors State License Board
License application and initial license fees
https://www.cslb.ca.gov/about_us/library/fees.aspx

This is just the surface

The full model is the complete, interactive deep-dive, and every business here is built to the same standard: a live economics simulator you tune to your own numbers, an interactive 3D walkthrough, a location scorecard, an owner-fit assessment, a buy-versus-build comparison, and the full breakdown of how it makes money and what quietly kills margin.

Monthly
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then $29 a month

Time to choose and start, then month to month.

$99 today for your first 3 months, then $29 a month until you cancel.

YearlyBest price
$199 a year

about $17 a month

The best price: a year to decide, open and run it.

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smbnest is a self-assessment tool. It does not give individualized financial, investment, legal or tax advice. Figures are estimates and benchmarks, not forecasts. Speak with a qualified financial adviser and a licensed attorney before you start, buy, finance or sign anything.