Motor Vehicle Towing Revenue Benchmarks
The average motor vehicle towing business in the United States generates $870K in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 9,860 motor vehicle towing businesses in the U.S., employing 64,530 workers with an average profit margin of 5.0%. The average employee in this industry earns $54K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Motor Vehicle Towing Business Actually Do?
Tow companies moving disabled, illegally parked, or repossessed vehicles. Revenue mix includes emergency roadside, police/AAA contracts, private lot impound, and repo work.
Who buys: Vehicle owners in breakdowns, insurance companies, property managers, police.
Average Revenue
$870K
per year
Profit Margin
5.0%
industry average
Revenue / Employee
$133K
per year
Total Businesses
9,860
in the US
Est. Owner Income
$44K
small business avg
Labor Cost
35.0%
of revenue
Avg Employee Wage
$54K
per year (BLS)
Market Saturation
3.0
firms per 100K people
How Much Do Motor Vehicle Towing Charge?
Tow companies charge a hook fee plus per-mile rate; heavy-duty and specialty runs at premium.
| Service | Typical range |
|---|---|
Local hook fee (light-duty) | $75–150 |
Per-mile rate | $3–8/mile |
Heavy-duty tow | $300–800 base + mileage |
Winch/off-road recovery | $150–500 |
Impound / storage per day | $25–75/day |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete motor vehicle towing business plan
A 12-section data-backed business plan for a motor vehicle towing 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 motor vehicle towing 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 |
|---|---|---|---|
Fuel & vehicle costs | $30 | $261K | Fuel is often the single biggest line — plus tires, maintenance, tolls. |
Wages & benefits | $35 | $305K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $52K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $26K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $21 | $183K | Insurance (very high), truck payments, dispatching software, driver benefits. |
Net profit | $5 | $44K | 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
12.86%
openings/year
Closure Rate
11.44%
closings/year
Net Job Growth
+2.27%
annual
Businesses Closed
1,319
in 2023
Firm Count Trend
Should You Start a Motor Vehicle Towing Business?
Startup Cost
$50K – $250K
Break-Even
41 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a motor vehicle towing business do?
- Tow companies moving disabled, illegally parked, or repossessed vehicles. Revenue mix includes emergency roadside, police/AAA contracts, private lot impound, and repo work. Vehicle owners in breakdowns, insurance companies, property managers, police.
- How much do motor vehicle towing charge?
- Tow companies charge a hook fee plus per-mile rate; heavy-duty and specialty runs at premium. See the pricing table above for typical rates by service type.
- How much does the average motor vehicle towing make per year?
- The average motor vehicle towing business generates $870K in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $44K per year at a 5.0% profit margin.
- How many motor vehicle towing businesses are there in the US?
- There are 9,860 motor vehicle towing businesses operating in the United States, employing a total of 64,530 workers.
- How much does it cost to start a motor vehicle towing business?
- Startup costs for a motor vehicle towing business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the motor vehicle towing industry?
- The average employee in the motor vehicle towing industry earns $54K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The motor vehicle towing industry is actively growing — adding jobs at a net rate of 2.3% per year. New establishments are opening faster than existing ones close (12.9% entry vs 11.4% exit), indicating healthy demand.
Approximately 54% of motor vehicle towing businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 1,319 firms in this industry closed permanently.
Employment & Wages
The average employee in the motor vehicle towing industry earns $54,228/year. This is near the national average of ~$65K. With 10,667 establishments employing 73,623 people, the typical business has about 7 employees.
Industry Trend (2000–2023)
The motor vehicle towing industry has grown 86% since 2000 (from 6,002 to 11,134 firms).
See full historical statistics →Compare Motor Vehicle Towing revenue with other industries: