Landscaping labor rate calculator: price a man-hour from your costs
A landscaping labor rate is the crew's yearly cost, trucks, equipment and insurance included, divided by the man-hours you bill, then raised by your margin. With the example inputs here, $173,000 a year over 4,200 billable man-hours is a $41.19 break-even and $48.46 per man-hour at a 15 percent margin. Enter your crew to get your real number.
Worked example at the example inputs
Enter the whole crew for a year: wages, billable man-hours, the truck and trailer, insurance and overhead. The answer is per billable man-hour. The numbers in the boxes are example inputs for a made-up three-person crew, there only to show the math. They are not market data or landscaping wage figures, so put in your own.
| Input | Example value |
|---|---|
| Crew wages and owner pay | $120,000 |
| Billable man-hours | 4,200 hours |
| Overhead and equipment | $25,000 |
| Trucks and trailer | $16,000 |
| Business insurance | $12,000 |
| Profit margin | 15% |
| Break-even rate | $41.19 an hour |
| Recommended rate at a 15% margin | $48.46 an hour |
The formula
($120,000 pay + $25,000 overhead + $16,000 vehicle + $12,000 insurance) = $173,000 a year. $173,000 / 4,200 billable hours = $41.19 break-even. $41.19 / (1 - 0.15) = $48.46 an hour, with $7.27 profit in every billed hour. The interactive calculator on this page recomputes the rate as you type your own numbers.
Turn the labor rate into a bid
Install bids are usually priced by the job or the square foot. Build them from this rate: man-hours for the job times the rate, plus materials at your markup and any equipment charge. Mowing prices work the same way: minutes per property, times the rate per minute.
How to find each input
Crew wages and owner pay
Every wage plus payroll taxes, and your own pay if you work on the crew. The example is an owner and two crew members.
Billable man-hours
Add every crew member's hours on paid jobs. Drive time between properties, loading the trailer, dump runs, rain days and the off season come out first.
Overhead and equipment
Mowers, trimmers, blowers and their repairs, blades and line, the yard or storage, licenses, software, phone and marketing. Spread a big machine over the years you will run it.
Trucks and trailer
Payments, fuel, maintenance and insurance for the crew truck and the trailer.
Business insurance
General liability, workers comp for the crew, and any applicator license coverage if you spray. Get the yearly total from your agent.
Profit margin
The share of the price the company keeps after costs, which is what carries it through the slow months.
Where the hours go
The season sets the year
If the crew works hard from spring to fall and slows down in winter, the year's costs still have to be paid from the season's billable hours. Use a full year of costs against a full year of billed hours.
Windshield time
Maintenance routes spend real time driving between properties. Unless the route is billed for it, every minute in the truck lowers billable hours.
Loading and dump runs
Morning load-out, green waste dumping and end of day cleanup are paid crew time. Count them as unbilled unless they are a line on the invoice.
Rate factors for landscapers
Maintenance versus installs
Mowing routes and install jobs carry different unbilled time. Installs often bill more of the day once the crew is on site, so some companies run two rates from the same costs.
Equipment heavy work
A skid steer or a sod cutter costs money whether it runs or not. Put ownership in overhead, or add an equipment charge on jobs that use it.
Crew size changes the math
A two-person crew and a four-person crew have different wage totals and different billable hours. Run the calculator for the crew you actually send.
Materials stay separate
Plants, mulch, soil and pavers go on the estimate as materials with your markup. This rate covers the people and the gear that move them.
Frequently asked questions
How do I figure my landscaping labor rate per man-hour?
Total a year of crew wages, equipment and overhead, trucks and insurance, divide by the man-hours you bill, and divide again by one minus your margin. This page's example crew comes out at $41.19 to break even and $48.46 per man-hour at 15 percent.
What is the difference between a man-hour and a crew hour?
A man-hour is one person working one hour. A three-person crew working one hour is three man-hours. This calculator gives a rate per man-hour, so multiply by crew size for an hour of the whole crew.
How should equipment costs go into the rate?
Spread what each machine costs you over the years you will run it, add yearly repairs and parts, and put that in overhead. If one machine only runs on certain jobs, an equipment charge on those jobs is cleaner than raising every hour.
How do I price a mowing route from this rate?
Time each property, add the drive to the next one, and multiply the minutes by the rate per man-minute and the crew size. A property that takes a two-person crew 30 minutes is one man-hour of labor before any drive time.
How much does Staxen cost for landscapers?
Staxen is $59 per month per AI employee, or $149 per month for all three. Describe the install out loud and Eddie drafts the estimate from your rates, and the client e-signs from a text link.