Landscaping
Landscaping Net Profit Calculator
Work out what remains after every cost, with seasonality made visible.
Result
Net profit here is before tax and before any owner's draw that is not already inside overhead. If you pay yourself out of what is left, this figure is your wage rather than the company's profit.
Get a Free Business AuditWhat moves the number
- Overhead running through the off season.
- Equipment replacement, which is continuous rather than occasional.
- Owner compensation, treated as a cost.
Where this one goes wrong
Reading an annual figure without the monthly shape. A landscaping business can show a healthy year and still run out of money in February, and only the monthly view shows it.
Questions
About this calculator
Why does seasonality matter to net profit?
Because the profit is made in a few months and spent across twelve. The annual number can look fine while the business is in difficulty for a quarter of the year.
Should owner pay come out first?
Yes, at a market rate for the work actually done. Otherwise a business that pays the owner nothing looks profitable.
How should equipment replacement be treated?
As an accrual each month rather than a shock when a mower dies. Machinery has a known working life and the replacement is predictable in aggregate.
The formula
net profit = revenue - direct costs - overhead
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How to use this calculator
- Revenue ($). Enter your own figure; the page starts at $47,000.
- Direct labour ($). Enter your own figure; the page starts at $16,000.
- Materials and equipment ($). Enter your own figure; the page starts at $11,000.
- Other direct costs ($). Enter your own figure; the page starts at $2,200.
- Overhead ($). Enter your own figure; the page starts at $12,500.
The result updates as you type, so you can try a figure, see what it does to net 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
| Input | Value |
|---|---|
| Revenue | $47,000 |
| Direct labour | $16,000 |
| Materials and equipment | $11,000 |
| Other direct costs | $2,200 |
| Overhead | $12,500 |
What comes out
| Result | Value |
|---|---|
| Net profit main result | $5,300 |
| Net margin | 11.3% |
| Total direct cost | $29,200 |
| Profit per working day | $240.91 |
That is $5,300 at a 11.3% margin, about $240.91 for every working day.
How sensitive the answer is
Holding everything else steady and changing only revenue, this is what happens to net profit. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue ($) | Net profit |
|---|---|
| $23,500 | -$18,200 |
| $35,250 | -$6,450 |
| $47,000 example above | $5,300 |
| $70,500 | $28,800 |
| $94,000 | $52,300 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Revenue ($)
- 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 $2,200.
- Overhead ($)
- A money amount, starting at $12,500.
What the results tell you
| Result | What it is |
|---|---|
| Net profit | The headline result. A money figure. |
| Net margin | A percentage. |
| Total direct cost | A money figure. |
| Profit per working day | A 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.