Lawn Care Profit Margin Benchmarks
Lawn care businesses typically achieve gross margins of 60-80% and net margins of 15-30%. The industry is highly seasonal with 70-80% of annual revenue concentrated in the 7-month growing season (April-October). The low barrier to entry ($3K-$8K startup) creates intense competition, compressing prices in many markets.
| Metric | Low | Average | High |
|---|---|---|---|
| Gross margin | 55% | 70% | 85% |
| Net margin | 12% | 22% | 35% |
| Markup | 100% | 200% | 350% |
| Typical annual revenue | $40,000 – $250,000/year for solo to multi-crew operations | ||
Key cost drivers
- Equipment maintenance and depreciation (10-20%)
- Fuel and transportation (8-15%)
- Labor (25-40% for employee-model)
- Insurance (3-6%)
- Marketing (5-10%)
Industry insights
- Basic mowing ($30-$85 per visit) is the lowest-margin service but generates recurring weekly revenue — it's the entry point for upselling higher-margin services.
- Fertilization and weed control ($50-$100 per application) has 25-40% net margins — much higher than mowing because labor cost per dollar of revenue is lower.
- Landscape design and hardscaping (patios, retaining walls) generate the highest revenue per job ($2K-$20K) with 30-40% margins.
- The seasonal cash flow gap is the #1 reason lawn care businesses fail — operators who don't save during peak months can't survive winter.
Tips to improve margins
- Package mowing + fertilization + spring/fall cleanup into a seasonal contract — bundled services have 40% higher lifetime value than à la carte.
- Use route optimization software to minimize drive time between properties — a 10% reduction in travel time increases effective hourly revenue by 12-15%.
- Offer snow removal in winter to retain employees year-round and stabilize cash flow — even mild winters generate enough revenue to cover fixed costs.
- Track revenue per hour (including drive time) — $100-$150/hour is the target. Anything below $80 means you're pricing too low or routes are too spread out.
Compare your numbers
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Tools & templates for Lawn Care & Landscaping
Data quality and assumptions
Last updated: July 2025Formula
Gross margin = (Revenue − Direct Costs) ÷ Revenue × 100. Net margin = (Revenue − All Costs) ÷ Revenue × 100. Revenue per crew hour = Total Weekly Revenue ÷ Total Crew Hours (mowing + travel).
Data sources
IBISWorld Landscaping Services Industry Report; DojoBusiness lawn care margin surveys; National Association of Landscape Professionals.
Limitations
Margins vary significantly by region, growing season length, service mix, and level of competition in the local market.
Key assumptions
- Mowing is the core service; additional services (fertilization, landscaping) are upsells
- Equipment costs are averaged over useful life
Methodology
Gross margin accounts for direct costs (fuel, equipment maintenance, supplies). Net margin includes labor, equipment depreciation, insurance, marketing, and overhead. Seasonal cash flow analysis assumes 7-month growing season.
Calculate your Lawn Care & Landscaping profit
Use the calculator below to see how your lawn care & landscaping margins compare to the benchmarks above.
Calculate profit, margin percentage, and pricing health from cost and revenue.
Find how many units or sales dollars you need to cover costs.
Calculate required revenue to reach your target profit after tax.
Calculate selling price from cost and target profit margin.
Frequently asked questions
How profitable is a lawn care business?+
Solo operators typically net 25-40% of revenue ($15K-$40K/year). Companies with employees net 12-25% ($30K-$100K). The key is route density — a tight route with 20 lawns/day is significantly more profitable than a spread-out route with 15 lawns/day.
What are the biggest costs in lawn care?+
Labor (25-40% of revenue for businesses with employees), equipment (mowers, trimmers, blowers — depreciate over 3-5 years), fuel ($200-$600/month per truck), and insurance ($1K-$3K/year for general liability and vehicle).
Is landscaping more profitable than mowing?+
Yes — landscape design and hardscaping generate 30-40% margins vs basic mowing at 15-25%. However, mowing provides weekly recurring revenue and is the gateway to higher-margin services.
How do I price lawn care services?+
Standard residential mowing: $30-$85 per visit depending on yard size. Most operators target $50-$80/hour per crew. Use our profit margin calculator to model your pricing. A good rule: your price should be 3x your direct costs.