Commercial Banking Revenue Benchmarks
The average commercial banking business in the United States generates $119.0M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 4,260 commercial banking businesses in the U.S., employing 1,525,965 workers with an average profit margin of 15.0%. The average employee in this industry earns $114K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Commercial Banking Business Actually Do?
Commercial Banking: Businesses that handle money — lending, investing, insuring risk, or facilitating financial transactions.
Who buys: Consumers, businesses, and institutional clients.
Sector-level description — a more specific write-up is available for high-traffic industries.
Average Revenue
$119.0M
per year
Profit Margin
15.0%
industry average
Revenue / Employee
$332K
per year
Total Businesses
4,260
in the US
Est. Owner Income
$17.8M
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
$114K
per year (BLS)
Market Saturation
1.3
firms per 100K people
How Much Do Commercial Banking Charge?
Commercial Banking: Financial services earn AUM fees, commissions, spreads, or hourly fees. The specifics vary within the commercial banking category — the ranges below are typical for the sector.
| Service | Typical range |
|---|---|
Investment mgmt (AUM) | 0.5–1.5% of assets/year |
Financial planning (hourly) | $150–500/hour |
Financial planning (flat) | $1,500–7,500 one-time |
Insurance commission | 5–15% of premium first year |
Sector-typical ranges — individual services within this industry may fall higher or lower.
Complete commercial banking business plan
A 12-section data-backed business plan for a commercial banking business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the commercial banking industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Claims & interest paid | $8 | $9.8M | Insurance claim payouts, interest paid to depositors, or securities transaction costs. |
Wages & benefits | $30 | $35.7M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $11 | $13.1M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $8 | $9.8M | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $27 | $32.7M | Compliance, technology, professional liability, licensing fees. |
Net profit | $15 | $17.8M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
4.85%
openings/year
Closure Rate
4.96%
closings/year
Net Job Growth
+5.15%
annual
Businesses Closed
273
in 2023
Firm Count Trend
Should You Start a Commercial Banking Business?
Startup Cost
$50K – $250K
Break-Even
0 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a commercial banking business do?
- Commercial Banking: Businesses that handle money — lending, investing, insuring risk, or facilitating financial transactions. Consumers, businesses, and institutional clients.
- How much do commercial banking charge?
- Commercial Banking: Financial services earn AUM fees, commissions, spreads, or hourly fees. The specifics vary within the commercial banking category — the ranges below are typical for the sector. See the pricing table above for typical rates by service type.
- How much does the average commercial banking make per year?
- The average commercial banking business generates $119.0M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $17.8M per year at a 15.0% profit margin.
- How many commercial banking businesses are there in the US?
- There are 4,260 commercial banking businesses operating in the United States, employing a total of 1,525,965 workers.
- How much does it cost to start a commercial banking business?
- Startup costs for a commercial banking business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the commercial banking industry?
- The average employee in the commercial banking industry earns $114K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The commercial banking industry is actively growing — adding jobs at a net rate of 5.2% per year. New establishments are opening faster than existing ones close (4.9% entry vs 5.0% exit), indicating healthy demand.
Approximately 78% of commercial banking businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 273 firms in this industry closed permanently.
Employment & Wages
The average employee in the commercial banking industry earns $113,615/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 80,221 establishments employing 1,388,187 people, the typical business has about 17 employees.
Industry Trend (2000–2023)
The commercial banking industry has declined 51% since 2000 (from 18,377 to 8,926 firms).
See full historical statistics →Compare Commercial Banking revenue with other industries: