Cost × markup = price
Each line gets its own multiplier, because pavers, plants, rentals and subs don't carry the same handling and risk. $410 pavers × 2.00 = $820.
Margin DriversCalculatorsGoes with Guide 9
Margin Drivers · Free calculator
Price a landscaping job the way the experts do: cost × markup on every line, labor burden counted as cost, then a margin and realized-rate check before the bid goes out.
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Type in the light yellow boxes only. Everything else calculates.
Dashed line = 60% gross margin goal
Cost is what you pay for each line. Price is what the customer pays: cost × markup. Use − and + to lower or raise any line's markup and watch the margin change. Prices add up to revenue; costs add up to job cost. Starting markups are examples; your labor markup should come from your own overhead (Guide 8: Building a Billing Rate).
Totals
Every line added up.
Targets
Key idea: Price every job from cost × markup, count burden in labor cost, then check the margin and realized rate before the bid goes out.
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A planning tool, not accounting or pricing advice. Starting markups are examples; use your own. See the estimator disclaimer.
How it works
The same EquiFlow job-costing method the experts use, on one screen.
Each line gets its own multiplier, because pavers, plants, rentals and subs don't carry the same handling and risk. $410 pavers × 2.00 = $820.
Payroll taxes, workers' comp and unemployment ride on every wage dollar. At 20% burden a $27 wage costs you $32.40 an hour. The labor markup is applied to wage, so the cost side stays honest.
Check gross margin against your goal, then check what each crew hour really earns. If the realized rate is under your target labor rate, the job is underpriced for its hours.
A 2× markup is a 50% margin, not 100%. To hit a 60% gross margin across the whole job, your blended markup has to average 2.5×. Gross margin = 1 − 1 ÷ markup.
This estimate's blended markup: — · needed for your goal: 2.50×
| Markup | Gross margin | $1,000 cost becomes |
|---|---|---|
| 1.35× | 25.9% | $1,350 |
| 1.50× | 33.3% | $1,500 |
| 2.00× | 50.0% | $2,000 |
| 2.50× | 60.0% | $2,500 |
| 3.00× | 66.7% | $3,000 |
| 3.45× | 71.0% | $3,450 |
Free pricing review
Send this estimate to EquiScape. An advisor will look at your markups, labor burden and realized rate against what your company needs to hit its margin goal, then reach out to talk it through.
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