How to Calculate Landscaping Job Profit (Formula)
Profit = Quote − [ (Hours × Wage × Burden) + Materials + Travel + Overhead ]
Net Margin % = Profit ÷ Quote × 100
The formula only works with burdened labor (wage × 1.25–1.45 for payroll taxes, workers comp, PTO), travel cost (drive-time wages + vehicle), and an overhead share per billable hour. Skip any of the three and the margin you see isn't real — that's why jobs that "looked profitable" lose money.
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Your Real Profit
What Counts as a Good Margin?
Net margin is profit as a share of the price after every cost — not the "I charged double the mulch" kind of margin. Benchmarks for landscaping jobs:
| Net margin | Verdict | What it means |
|---|---|---|
| Below 0% | 🔴 Losing money | The job pays you less than it costs. Re-price or decline. |
| 0–10% | 🟠 Thin | One rain delay, extra dump run, or price bump erases it. |
| 15–25% | 🟢 Healthy | The standard target for a sustainable landscaping business. |
| 25%+ | 💪 Strong | Common on skilled work: hardscape, design-build, problem jobs others won't touch. |
Most landscapers think they run at 20% and actually keep about 5% — the gap is almost always unburdened labor, unbilled travel, and unallocated overhead. The full math is in our guide on what profit margin landscapers should charge.
Worked Example: The Default Numbers Above
A $1,400 quote for a bed renovation. Two-person crew, 5 hours on site (10 labor hours), $25/hour wages, $400 in materials, 50 minutes of round-trip driving, $9.50/hour overhead:
- Burdened labor: 10 hrs × $25 × 1.35 = $337.50 (not $250 — burden is real money)
- Materials: $400 at your cost
- Travel: (50/60 hr × 2 people × $25 × 1.35) + $22 vehicle = $78.25
- Overhead: 10 hrs × $9.50 = $95
- True cost: $910.75 → profit $489.25 → net margin 35% ✅
Now watch how fast it moves: quote the same job at $1,000 — which "feels" fine next to $650 of visible labor-plus-materials — and margin drops to 8.9%. Add one return visit for a punch list and you're near break-even. That's why the pros price from true cost up, never from gut feel down.
If the Margin Comes Out Thin, Do This
1. Re-price before you re-work. Use the pricing guidance panel: the 20% row is the price where the job genuinely pays. Most customers don't leave over 10–15% — they leave over surprises.
2. Cut travel, not corners. Batch nearby jobs on the same day, or add a trip charge for out-of-area work. Travel is the easiest cost to reduce without touching quality — see how landscapers charge for drive time.
3. Check your materials markup. Passing materials through at cost is a silent margin killer. Standard practice is 15–50% depending on the material — our materials markup calculator covers the ranges.
4. Track estimated vs actual. The estimate is a hypothesis; the timesheet is the truth. Compare them after every job and your next quote gets sharper — that feedback loop is the core of job costing software.
This Calculator, But Automatic on Every Quote
GreenMargins runs this exact math — burdened labor, Google Maps travel, materials markup, overhead — on every quote you build, and shows the margin before you hit send.
Upload a real quote — see its true margin free60 seconds, no signup. Or start a 14-day free trial — $59/month, no credit card.
Frequently Asked Questions
How do you calculate profit on a landscaping job?
What is a good profit margin on a landscaping job?
Why do jobs that look profitable end up losing money?
What burden multiplier should I use?
How do I figure out overhead per billable hour?
Should I count my own hours in the labor cost?
Complete the Picture
Labor Burden Calculator
Get your exact burden multiplier instead of guessing between 1.25 and 1.45.
Overhead Calculator
Turn your monthly fixed costs into a per-billable-hour rate for this calculator.
Travel Time Calculator
Detailed drive-time costing with mileage rates for US and Canadian contractors.
Materials Markup Calculator
Standard markup ranges by material type, so materials stop passing through at cost.
Guide: Is This Job Profitable?
The 5-cost check behind this calculator, explained with a full worked example.
Guide: Automated Estimating
How contractors run this math automatically on every quote they send.