Profit & Margins

How to Calculate True Labor Cost for Landscaping Crews

Wages are only the starting point. Loaded labor cost helps you price jobs without hiding payroll costs in profit.

Loaded labor is the number that matters

If a crew member earns $24 per hour, the business still pays payroll taxes, insurance, paid time, training, uniforms, and other employee costs.

Loaded labor cost is the hourly wage plus those labor-related expenses. It is the number your estimates should use.

Use labor burden as a percentage

A simple way to estimate loaded labor is to multiply wage by one plus labor burden percentage. A $24 wage with 25% burden becomes $30 per loaded hour.

The percentage does not need to be perfect to be useful. A realistic estimate beats ignoring the cost entirely.

Price by crew hour

A two-person crew working one hour creates two labor hours. If travel adds 20 minutes each way, that time also belongs in the job economics.

Pricing from crew hours helps compare jobs, routes, and service types more honestly.