That $12,000 mower doesn't last forever. Neither does your $800 string trimmer or your $45,000 truck. Every hour of use brings equipment closer to replacement. If you're not charging for equipment wear, you're subsidizing your customers' lawns with your future equipment purchases.
Here's exactly how to calculate and recover equipment costs on every job.
3 Methods to Calculate Equipment Cost
| Method | How It Works | Accuracy | Complexity | Best For |
|---|---|---|---|---|
| Hourly Rate | Cost ÷ useful hours | High | Medium | Per-job tracking |
| Overhead % | Include in overhead rate | Medium | Low | Simple operations |
| Per-Job Flat Fee | Fixed charge per job type | Low-Medium | Low | Consistent job sizes |
*Equipment costs vary significantly by region (US) and usage patterns.
The Hourly Rate Formula
The most accurate method breaks equipment cost into an hourly rate:
This accounts for both depreciation (the equipment wearing out) and maintenance (keeping it running).
Worked Example: Zero-Turn Mower
Let's calculate the true cost per hour for a commercial zero-turn mower:
Equipment: Scag Tiger Cat II 52"
Lifetime Maintenance Estimate
For a 2-hour mowing job, add $18.78 in equipment cost to your quote.
Equipment Cost for a Full Crew
Most jobs use multiple pieces of equipment. Here's a typical mowing crew setup:
| Equipment | Cost (US) | Life (hrs) | $/Hour |
|---|---|---|---|
| Zero-turn mower | $12,500 | 2,000 | $9.39 |
| Walk-behind (backup) | $3,200 | 1,500 | $3.20 |
| String trimmer (x2) | $600 | 500 | $2.40 |
| Backpack blower (x2) | $550 | 1,000 | $1.10 |
| Edger | $450 | 800 | $0.85 |
| Trailer | $4,500 | 5,000 | $1.35 |
| Crew Equipment Total Per Hour | $18.29 | ||
*Maintenance costs included in hourly rates. Prices reflect US market as of 2026.
At $18.29/hour in equipment cost, a 2-hour residential mowing job should include approximately $37 in equipment cost. If you're charging $80 for that job, equipment is 46% of your price—a significant cost that many landscapers completely ignore.
Method 2: Include in Overhead
If tracking equipment by job feels like too much, you can include equipment depreciation in your overhead rate. This is simpler but less accurate for jobs that use equipment heavily vs. lightly.
How to calculate:
- Sum annual equipment depreciation for all equipment
- Add to your monthly overhead calculation
- Distribute across all jobs via overhead rate
This works well if most of your jobs use similar equipment. It's less accurate if you mix equipment-heavy work (mowing) with equipment-light work (hand weeding).
Method 3: Per-Job Flat Fees
Some landscapers use flat equipment charges by job type:
- Mowing job: +$15-25 equipment fee
- Mulch installation: +$10-15 equipment fee
- Spring cleanup: +$20-30 equipment fee
This is quick to apply but can over- or under-charge depending on job duration. Best used as a starting point while you build more accurate tracking.
Don't Forget: Truck Costs
Your truck is equipment too. Here's a quick calculation:
$45,000 truck with 200,000-mile life = $0.225/mile depreciation
Add fuel ($0.15/mile) + maintenance ($0.10/mile) = $0.475/mile total
Fuel costs vary by location (US average used). Some contractors track trucks in overhead instead.
Which Method Should You Use?
- Hourly rate method: Most accurate. Use if you have different job types with varying equipment needs.
- Overhead method: Simplest. Use if all your jobs use similar equipment for similar durations.
- Flat fee method: Quick starting point. Use while building more accurate tracking.
Whatever method you choose, the key is choosing one. Ignoring equipment costs means you're losing money on every job.
Frequently Asked Questions
Related Guides
Overhead Tracking Methods
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Drainage & Grading Projects
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