Know your numbers first
Every accurate landscaping estimate is built on these six parts:
- Labor hours and hourly rate: Estimate how long the job will take and multiply it by your billable hourly rate. Labor is usually the biggest cost, so getting these hours right is critical.
- Material costs and markup: List all materials (mulch, plants, sod, pavers, gravel, edging) and add a markup to cover sourcing, handling, and waste. Most landscaping businesses use a 10 to 30% markup.
- Equipment, fuel, and rentals: Include the cost of using your truck, trailer, mowers, skid steer, compactors, plus fuel and any rented equipment. These small items add up fast on a job site.
- Overhead costs: Overhead includes insurance, licenses, office expenses, software, marketing, tools, and your owner salary. Spread these costs across every job so they don’t eat into profit.
- Contingency: Add 10 to 20% to protect yourself from delays, weather issues, price changes, or unexpected labor hours. This keeps your margins safe.
- Profit margin: Add your profit margin on top of all costs. Most landscaping companies aim for 15 to 30%, with experienced operators going higher on complex projects.
A quick way to convert yearly overhead into a per-job burden is to divide your annual overhead by your projected billable hours. Example: $120,000 overhead ÷ 6,000 crew hours = $20 overhead per labor hour.


