Grounds ToolkitEstimating and Pricing
What Is the Minimum Price I Should Charge?
Enter labor cost, other costs, and a target margin. If you already have a price in mind, enter it too, this shows exactly how it compares and what it would take to close the gap.
How this is calculated
Total cost is labor plus equipment, materials, and travel. The minimum price at a target margin is total cost divided by one minus that margin, this is exactly the PRD's own Show Your Work example: $174 labor plus $42 other costs is $216 total, and a 35% target margin means cost is 65% of price, so $216 ÷ 0.65 is about $332.
Frequently asked questions
What counts as "other costs"?
Equipment operating cost, fuel, materials, and travel, anything beyond labor that this specific job consumes.
Why 35% as the default target margin?
Industry gross margin benchmarks for landscaping run roughly 30-50%, with mowing-heavy small operators often leaner. 35% sits inside that band for recurring maintenance work. Always editable.
What does the calculator do if my proposed price falls short?
It shows the exact price increase needed to reach your target margin at the costs entered. It does not claim a customer will accept that price, only what the math requires.
Is this the same as markup?
No. Margin and markup are related but different, see the Gross Margin and Markup calculator if you want to convert between them or understand the difference.
Next decision
Need labor cost first? Use Job Labor Cost. Want to understand the margin/markup relationship? SeeGross Margin and Markup.