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Landscaping

Landscaping Gross Profit Calculator

Work out gross profit with crew, equipment and material defined consistently as direct costs.

Your numbers

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Result

Gross profit $17,800
Gross margin 37.9%
Total direct cost $29,200
Profit per working day $809.09
That is $17,800 at a 37.9% margin, about $809.09 for every working day. Overhead still has to come out of it.

Gross profit is what is left after the cost of doing the job. Overhead comes out of that: the building, the office wages, the vans, insurance, software and advertising. A healthy gross margin still loses money if overhead is larger.

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What moves the number

  • Crew labour with burden.
  • Equipment wear attributable to the work.
  • Material at landed cost including delivery.

Where this one goes wrong

Leaving equipment out of direct cost. Landscaping consumes machinery in proportion to hours worked, and treating it entirely as overhead makes labour-only jobs look better than they are.

Questions

About this calculator

Should equipment be a direct cost?

The wear portion, yes. It is consumed by the job in the same way fuel is, and attributing it shows which work is machinery-intensive.

Maintenance versus installation margins?

They differ substantially and should be measured apart. Blending them obscures which one is actually carrying the business.

What margin should landscaping carry?

It depends on overhead and mix. The more useful exercise is comparing your own work types against each other rather than against an external figure.

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The formula

gross profit = revenue - direct costs

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Please keep the attribution line. It is the only thing we ask in return.

How to use this calculator

  1. Revenue ($). Enter your own figure; the page starts at $47,000.
  2. Direct labour ($). Enter your own figure; the page starts at $16,000.
  3. Materials and equipment ($). Enter your own figure; the page starts at $11,000.
  4. Other direct costs ($). Enter your own figure; the page starts at $2,200.

The result updates as you type, so you can try a figure, see what it does to gross profit, and change it back. Nothing you enter is sent anywhere or saved.

A worked example

These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.

What goes in

InputValue
Revenue$47,000
Direct labour$16,000
Materials and equipment$11,000
Other direct costs$2,200

What comes out

ResultValue
Gross profit main result$17,800
Gross margin37.9%
Total direct cost$29,200
Profit per working day$809.09

That is $17,800 at a 37.9% margin, about $809.09 for every working day. Overhead still has to come out of it.

How sensitive the answer is

Holding everything else steady and changing only revenue, this is what happens to gross profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.

Revenue ($)Gross profit
$23,500 -$5,700
$35,250 $6,050
$47,000 example above $17,800
$70,500 $41,300
$94,000 $64,800

Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.

What each figure means

Revenue ($)
A money amount, starting at $47,000.
Direct labour ($)
A money amount, starting at $16,000.
Materials and equipment ($)
A money amount, starting at $11,000.
Other direct costs ($)
A money amount, starting at $2,200.

What the results tell you

ResultWhat it is
Gross profitThe headline result. A money figure.
Gross marginA percentage.
Total direct costA money figure.
Profit per working dayA money figure.

Seasonality is not in this

Coverage and material figures assume the area you enter. Slope, access for machinery, existing growth and the time of year all affect both quantity and labour, and none of them appear in a calculation like this.

Estimating is the easy part

The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.