How Much Should Landscapers Charge Per Hour? (It's Not $60)

Q: What's included in labor burden for landscapers?

Labor burden includes employer payroll taxes (FICA, FUTA, SUTA—about 7.65-10%), workers compensation insurance (3-8% for landscaping), general liability insurance, health benefits if offered, and paid time off. Total burden typically adds 25-35% on top of base wages.

Q: Why do landscaping companies charge $50-100/hour when workers make $15-20?

The gap covers labor burden (25-35% on top of wages), overhead (trucks, equipment, insurance, office costs), and profit margin. A worker paid $18/hr actually costs $23-24/hr with burden. Add $10-15/hr overhead allocation and 20% profit, and you need $40-50/hr just to break even on that one worker.

Q: Should I charge the same hourly rate for all services?

Not necessarily. Many landscapers charge different rates based on equipment used, skill required, and market rates. Mowing might be $50/hr while hardscaping is $75-100/hr. However, having one consistent rate simplifies quoting and ensures all jobs cover your true costs.

Q: How do I raise my hourly rate without losing customers?

Raise rates 5-10% annually with 30-day notice. Communicate the value you provide and rising costs (fuel, insurance, labor). Some customers will leave—that's okay if your remaining customers are more profitable. Focus on service quality and reliability to justify premium pricing.

3 Ways to Set Your Hourly Rate

Different methods have different accuracy levels. Here's how they compare:

Method	Best For	Pros	Cons
Cost-Plus Formula	Accurate pricing based on your actual costs	Ensures profitability; adjusts as costs change	Requires tracking all expenses accurately
Market-Based	Quick competitive positioning	Easy to research; customers understand	Competitors may be undercharging
Revenue Target	Working backward from income goals	Ties rate to business goals	May not reflect true costs

Worked Example: Calculating Your True Hourly Rate

Let's calculate the minimum hourly rate for a 2-person crew doing lawn maintenance:

Example: 2-Person Crew Hourly Rate

Step 1: Labor Costs

Worker 1 base wage$20.00/hr

Worker 2 base wage$18.00/hr

Combined base wages$38.00/hr

Labor burden (× 1.30 multiplier)$49.40/hr

Step 2: Overhead Allocation

Monthly overhead (truck, equipment, insurance, etc.)$4,200

Billable hours per month (crew)280 hrs

Overhead per billable hour$15.00/hr

Step 3: Break-Even + Profit

Total cost per hour ($49.40 + $15)$64.40/hr

Add 20% profit margin$12.88/hr

Minimum hourly rate (crew)$77.28/hr

Per-worker rate: $77.28 ÷ 2 workers = $38.64/hr per person

Reality check: If you charge $50/hr for this crew, you'd lose $14.40/hr

Note: Labor burden varies by state. Workers comp for landscaping typically runs 3-8% of wages. All figures are US-based estimates.

This worksheet is exactly what landscape estimating software automates: GreenMargins applies your burden multiplier, overhead per billable hour, and target margin to every quote, so the math above runs itself on every job you price.

Now run your numbers

Same formula as the example above, seeded with the same values. Swap in your crew’s real costs — it updates as you type.

Crew size

Avg wage $/hr

Labor burden %

Profit margin %

Monthly overhead $

Billable hrs /mo

What do you charge now? $/hr per crew, optional

Loaded labor cost$49.40/hr

Overhead per billable hour$15.00/hr

Break-even rate$64.40/hr

Your minimum crew rate

$77.28/hr

$38.64/hr per worker

Break-even = loaded labor + overhead. Minimum rate adds your profit margin on top, same as the worked example.

Does a real quote survive these rates?

Run one of your actual quotes through the free 60-second autopsy — your numbers above carry over automatically. No account.

Check a real quote →

Email me this breakdown

Your rate math plus the 3-part pricing series other crews use to stop undercharging.

Submitting enrolls you in the short follow-up series. Unsubscribe anytime.

What's Included in Labor Burden?

Labor burden is everything you pay on top of wages. For landscaping businesses, it typically includes:

FICA (Social Security + Medicare): 7.65% employer share
Federal unemployment (FUTA): 0.6% on first $7,000/worker
State unemployment (SUTA): 2-6% depending on your state and history
Workers compensation: 3-8% for landscaping (higher-risk trade)
General liability portion: Often calculated per $100 of payroll
Benefits if offered: Health, retirement, PTO

Total burden typically adds 25-35% on top of base wages. A $20/hr worker actually costs you $25-27/hr.

Setting Rates by Service Type

For market context, typical billed ranges by service type — treat these as reference points, not your answer:

Basic mowing/maintenance: $45-65/hr
Planting and bed work: $50-70/hr
Tree and shrub trimming: $55-80/hr
Irrigation installation: $65-90/hr
Hardscaping (patios, walls): $75-100+/hr
Design and consultation: $75-150/hr

Note: Rates vary significantly by region. Metropolitan areas often command 30-50% higher rates than rural markets. Research local competitors.

5 Signs You're Undercharging

Every customer says yes immediately: If no one ever pushes back on price, you're probably too cheap.
Tight on cash despite being busy: Full schedule but can't make payroll? Your rate isn't covering costs.
Haven't raised rates in 2+ years: Costs increase 3-5% annually. Your rate should too.
Working more hours than planned: If jobs always take longer, your rate needs to compensate.
Competitors charge significantly more: If you're the cheapest by far, you may be the only one losing money.

Fixing an undercharging problem starts at the quote, not the invoice — see how to price landscaping jobs without losing money for the five-step formula that builds each price from your costs up.

Frequently Asked Questions

How much should landscapers charge per hour?

There is no single right number — the rate has to be built from your own costs: hourly wage times roughly 1.3 for labor burden, plus overhead per billable hour, plus a real profit margin. Most landscapers who run that math discover they are undercharging by $15/hr or more. The full formula, a worked crew example, and a live calculator to find your exact rate are in the guide.

How do I calculate my landscaping hourly rate?

Use this formula: Hourly Rate = (Base Wage × 1.25-1.35 burden multiplier) + (Monthly Overhead ÷ Billable Hours) + Profit Margin. For example: $20 wage × 1.30 burden = $26 loaded labor cost, plus $8/hr overhead allocation (from $1,200 monthly overhead ÷ 150 billable hours), equals $34/hr break-even cost. Add 20% profit margin for a minimum rate of $41/hr per worker.

What's included in labor burden for landscapers?

Labor burden includes employer payroll taxes (FICA at 7.65%, FUTA, and SUTA—totaling about 10-12%), workers compensation insurance (typically 3-8% of wages for landscaping due to the physical nature of work), general liability insurance allocated per payroll dollar, health benefits if offered, and paid time off accrual. Total burden typically adds 25-35% on top of base wages.

Why do landscaping companies charge $50-100/hour when workers make $15-20?

The gap between worker wages and billing rates covers several essential costs: labor burden adds 25-35% on top of wages (taxes, insurance, benefits), overhead allocation covers trucks, trailers, equipment, fuel, maintenance, office costs, and administrative time. A worker paid $18/hr actually costs $23-24/hr with burden. Add $10-15/hr overhead allocation and 20% profit margin, and you need $40-50/hr just to break even on that worker. The profit margin funds business growth and owner compensation.

Should I charge the same hourly rate for all services?

Not necessarily—many successful landscapers charge different rates based on equipment used, skill level required, and market rates for specific services. Mowing might be $50/hr while hardscaping is $75-100/hr because it requires more expensive equipment and specialized skills. However, using one consistent rate simplifies quoting and ensures every job covers your true costs. The key is that your lowest rate must still be profitable.

How do I raise my hourly rate without losing customers?

Raise rates 5-10% annually with 30-day written notice. Communicate the value you provide and explain rising costs (fuel, insurance, labor market pressures). Some customers will leave—that's actually okay if your remaining customers are more profitable at the higher rate. Focus on exceptional service quality and reliability to justify premium pricing. Consider grandfathering long-term loyal customers at a smaller increase.

Know Your True Hourly Cost

GreenMargins calculates your real labor cost per job—including burden, overhead, and profit margin. Stop guessing, start pricing right.

No credit card required • Cancel anytime

How Much Should Landscapers Charge Per Hour?

Quick Answer

✓ Include in Your Rate

✗ Common Mistakes