Landscaping Estimating in 7 Steps: A Guide for Contractors

How To Operations

Landscaping contractors need to know the ins and outs of landscaping estimating. Why? Because accurate estimation is not only the foundation of your project’s success; it’s also the foundation of your business’s success.

The right strategy locks in profitability. Without one, you could end up underquoting, losing money, or overcharging and scaring off clients. And that spells disaster for your bottom line.

Landscaping pricing is complex and multifaceted. It involves more than just your landscaping hourly rate. You need to account for materials, overhead, labor, and profit margin—all while staying competitive.

In this guide, we’ll break it down for you step-by-step. We’ll start with the project plan, finish with the final cost calculation, and walk you through everything in between.

Let’s get started.

Step 1: Create the Landscaping Project Plan

A landscaping project plan is a document that says exactly what’s getting done and when.

Its purpose? To lay down the scope, the design details, key considerations, and the major milestones. It serves as the foundation for your landscaping estimate.

Here’s how to create one:

First up, define the scope. This is what the project includes. For example, are you redoing a backyard? Installing a new patio? Or clearing out a garden bed?
Then, consider your client’s needs and preferences. You’ll get to know these during your consultation. Ask about their must-haves and dream features. Set clear budget expectations and a timeline. The more details, the better.
Break the project down into steps. Site prep, planting, hardscaping, irrigation—list it all out. This makes estimating labor and materials so much easier.
Sketch a rough layout or create a digital design. That way, clients can really see the vision.
Finally, note soil quality, potential drainage issues, the level of sun exposure, and any obstacles you’ll be working with. You might need to adjust your plan.

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Step 2: Calculate the Time for the Landscaping Work

Before you know how much to charge, you need clarity on what’s involved—and how long it’ll all take.

The first step is to take a close look at the project tasks, which are those milestones you broke down in step 1. For each task, consider:

Labor needs
Time duration
Equipment required
Site prep or cleanup time

With this information on hand and ready, you can calculate the total project time:

Add up the estimated time for each task.
Factor in any dependencies—some tasks might overlap, while others need to happen in sequence.
Adjust for efficiency—account for teamwork, equipment speed, and experience levels.

Step 3: Calculate Materials Costs

Time for landscaping work is now accounted for. Let’s move on to materials.

To figure out how much the job’s materials will cost, follow these steps:

List out every material you’ll need to buy using the project plan.
Get in touch with local suppliers for a quote. Don’t rely on outdated info from a project last year—prices change over time.
Compare pricing across different suppliers. That way, you know you’re getting the best deal.
Factor in waste and overage. Ordering extra prevents delays if something gets damaged or miscalculated.

You want to be really thorough when making these calculations. To get you thinking, here are some materials you might need to purchase:

Compost
Cement
Lawn seed
Trees, plants, and other foliage
Mulch
Lawn treatments
Gravel and boulders
Irrigation supplies (hoses, sprinklers, drip systems)
Equipment rentals
Hardscape materials (pavers, bricks, edging stones)
Fertilizer and soil amendments
Lighting fixtures

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Step 4: Calculate the Landscaping Hourly Rate

The average hourly rate for a landscaper is $15.94—but it’s not quite that simple.

Pay rates depend on a couple of different factors. For example, more experienced or skilled landscapers earn $20.05 per hour.

It also changes by location. The average landscaper in Alaska takes home $19.75 per hour compared to $14 in Louisiana.

So, how do you determine what to charge?

Research industry standards in your area to see what’s competitive.
Consider the skill level of your team.
Factor in your location. Local cost of living and demand impact rates.
Identify niche tasks that require premium pricing (tree removal or irrigation installation, for example).
Know what you can afford to pay while maintaining a profit.

Step 5: Calculate Overhead Costs

Overhead costs are those essential expenses that keep your business running. They’re usually broken down into two categories: fixed and variable.

Fixed overhead costs don’t change. They stay the same, no matter how many jobs you take on. Insurance is a good example.
Variable overhead costs go up or down depending on your workload. Examples include fuel and equipment maintenance.

As a business owner, you are responsible for funding these costs. You need to make sure the rate you charge covers them.

Of course, this doesn’t mean charging a single client enough to cover your fuel costs for the year. It means breaking down your overhead costs and spreading them out over each job.

It’s vital for the future of your business to account for these expenses. Why? Because ignoring them means you could be underpricing your work. This eats into your profit margin.

Here’s how to calculate your overheads per job:

Add up all fixed and variable overhead costs for the year.
Estimate how many jobs you complete annually.
Divide your total overhead by the number of jobs to find a per-job cost.
Add this amount to your pricing. This makes sure you’re covering expenses, so your business stays sustainable—and actually earns you a profit.

Step 6: Add Your Markup

We touched on it briefly in step 5, but here’s where profit margin really comes into the picture.

Your profit margin is the revenue left after covering all costs. According to Investopedia, “Expressed as a percentage, profit margin indicates how many cents of profit have been generated for each dollar of sales.”

The higher your profit margin, the more cash you get to take home and keep for yourself. It sounds great, but here’s the kicker—make your profit margin too steep, and you lose business to cheaper competition.

You want to strike a strategic balance of competitive pricing and profit.

First, calculate all your costs—labor, materials, overhead—so you know your baseline.

Then, decide on a profit margin that makes sense for your business goals. Aim for around 10-20%.

Be sure to look at your local competition too. If you’re charging a lot more, you’ll need to justify it with higher service quality or unique offerings.

Finally, remember that price isn’t the be-all and end-all for your clients. Customer experience, reliability, reviews, and professionalism all influence their decision-making.

Step 7: Calculate the Total Landscaping Service Pricing

Now, it’s time to pull everything together into a final price. Work your way through these steps:

Add up your costs. This includes labor, materials, and overhead per job. This is your baseline—what you need to cover so you don’t lose money on the job.
Apply your markup. If you’ve decided on a 15% profit margin, for example, multiply your total cost by 1.15 to calculate the final price.
Check your competition. If your pricing is much higher, consider whether your service quality justifies the difference. If it’s lower, you may be undervaluing your work.

Dollars matter, but how you present the price is almost as important.

A vague estimate raises questions and makes it harder for clients to see the value. In contrast, a polished, itemized estimate builds trust and wins business.

Here are some tips:

Use a professional layout. A well-structured, branded estimate looks more credible than an email with a price tagged on the end.
Show line items for labor and materials.
Give them a reason to say yes. Reinforce why your service is the best choice—experience, reliability, quality materials, or warranties. You could even pop a short testimonial or two into your estimate.
Show them how to take the next step. Should they email you? Write down your email address. You can also create a sense of urgency (and protect your profit margin) with a deadline. For example, you might write: “This estimate is valid for 30 days after receipt.”

5 Pro Tips on How to Price Landscaping Jobs

Get the most out of your landscaping pricing with these expert tips:

Don’t underestimate time. Every job takes longer than you think. Factor in setup, cleanup, and those unexpected delays that always pop up.
Account for overhead. Fuel and equipment wear and tear add up fast. Make sure your pricing covers these costs.
Plan for seasonal shifts. Demand changes throughout the year. In peak season, you can charge more. In slower months, competitive pricing can keep work steady.
Use estimating software. Tools like Joist make quoting faster and more accurate, so you don’t leave money on the table.
Build in profit, not just survival. Covering costs isn’t enough—your price should include enough margin to grow your business and give yourself a financial cushion.