Backyard landscaping is one of those categories where the price range is genuinely enormous. A customer who wants fresh sod and a few shrubs is looking at $2,000. A customer who wants a paver patio, retaining wall, outdoor kitchen, fire pit, and irrigation system is looking at $50,000+. Same word — "landscaping" — completely different jobs.
For landscaping contractors, the challenge isn't knowing what things cost. You know what a yard of mulch runs and what a pallet of pavers goes for. The challenge is building estimates that account for all the moving parts, presenting them clearly, and making sure your margin holds when the project takes a day longer than planned because the ground was harder than expected.
Backyard landscaping costs by project type
| Project Type | Materials | Labor | Total Range |
|---|---|---|---|
| Basic cleanup and planting (mulch, shrubs, edging) | $500–$2,000 | $500–$1,500 | $1,000–$3,500 |
| Sod installation (1,000–3,000 sq ft) | $500–$1,800 | $600–$1,500 | $1,100–$3,300 |
| Paver patio (200–400 sq ft) | $1,500–$4,000 | $2,000–$5,000 | $3,500–$9,000 |
| Retaining wall (25–50 linear ft, 2–4 ft tall) | $1,500–$4,000 | $2,000–$5,500 | $3,500–$9,500 |
| Irrigation system (average backyard) | $1,000–$2,500 | $1,500–$3,000 | $2,500–$5,500 |
| Outdoor lighting (8–15 fixtures) | $600–$2,000 | $800–$2,000 | $1,400–$4,000 |
| Fire pit (built-in, stone/block) | $500–$2,000 | $500–$1,500 | $1,000–$3,500 |
| Fence installation (wood, 100–150 linear ft) | $1,500–$4,000 | $1,500–$3,500 | $3,000–$7,500 |
| Full backyard transformation | $8,000–$25,000 | $7,000–$20,000 | $15,000–$45,000 |
The sweet spot for most residential landscaping companies is the $5,000–$20,000 project. Big enough to be worth mobilizing your crew and equipment, small enough that the customer can make a decision without a second mortgage.
Detailed cost breakdown: paver patio example
Since paver patios are one of the most requested backyard projects, here's what a typical 300 sq ft patio actually costs to build:
| Component | Materials | Labor | Total |
|---|---|---|---|
| Excavation (6–8" depth) | — | $400–$800 | $400–$800 |
| Gravel base (4–6" compacted) | $300–$600 | $300–$500 | $600–$1,100 |
| Sand leveling layer (1") | $75–$150 | $150–$300 | $225–$450 |
| Pavers (300 sq ft) | $900–$3,000 | $900–$2,000 | $1,800–$5,000 |
| Edge restraint | $75–$200 | $100–$200 | $175–$400 |
| Polymeric sand | $75–$150 | $100–$200 | $175–$350 |
| Haul-away / disposal | — | $150–$400 | $150–$400 |
| Total | $1,425–$4,100 | $2,100–$4,400 | $3,525–$8,500 |
Paver selection drives the materials cost. Standard concrete pavers run $3–$6/sq ft. Natural stone or porcelain pavers can be $10–$20/sq ft. The labor is roughly the same regardless of material — it's the prep work (excavation, base, leveling) that takes the most time.
Factors that affect backyard landscaping costs
Yard size and terrain
A flat 2,000 sq ft backyard is straightforward. A sloped lot that needs grading, terracing, or retaining walls is a different project entirely. Grading costs $1,000–$5,000 depending on the volume of soil that needs to move. Steep slopes may require engineering for retaining walls, which adds design costs before you even break ground.
Soil conditions
Rocky soil means slower excavation and potentially broken equipment. Clay soil drains poorly and may require amendments or drainage solutions. Sandy soil is easy to dig but may need more base material for hardscaping. Know what you're working with before you price the job.
Access
Can you get a skid steer into the backyard? If the only access is through a 36-inch gate, everything goes in by wheelbarrow. That alone can double your labor hours on material placement. Factor it into your estimate — customers understand when you explain why limited access affects the price.
Drainage
Every hardscape project should address drainage. A patio that drains toward the house foundation is a liability. French drains, channel drains, or re-grading to redirect water adds $500–$3,000 to the project but prevents callbacks and damage claims.
Permits
Fences almost always require permits ($50–$300). Retaining walls over 4 feet typically need engineering and permits ($200–$1,000+). Patios usually don't, unless they're near a property line or in a regulated zone. Check local requirements — an unpermitted retaining wall that fails is a lawsuit waiting to happen.
Plant material and design
The difference between a functional backyard and a designed backyard is the plant palette. A landscape design from a certified designer costs $500–$2,500, but it dramatically increases the project value and the customer's willingness to pay. If you don't offer design in-house, partner with a designer and mark up their fee 10–15%.
Regional price variations
| Region | Adjustment | Notes |
|---|---|---|
| Northeast | +10% to +25% | Short season compresses demand, higher labor costs |
| Southeast | -5% to +5% | Year-round work, competitive market, lower materials cost |
| Midwest | -10% to +5% | Seasonal market, moderate labor rates |
| Southwest | +0% to +15% | Xeriscaping popular, rock/gravel work common, irrigation essential |
| West Coast | +15% to +35% | Drought-tolerant design premium, high labor costs |
What landscaping contractors should charge
Target gross margin for landscaping installation work: 40–55%. Maintenance work runs lower margins on higher volume. Installation is where you build wealth — if you price it correctly.
- Labor rate: $55–$110/hour billed per crew member depending on market and skill level. Hardscape work (pavers, walls) commands the higher end. Planting and mulching is at the lower end.
- Materials markup: 25–50% on all materials including plants, stone, mulch, and hardscape materials. Bulk materials (gravel, soil, mulch) have lower markups (20–30%) because the volume is visible. Specialty items (fixtures, lighting, pavers) can be marked up 35–50%.
- Equipment charge: $200–$600/day for skid steers, mini excavators, compactors. Even if you own the equipment, charge for it — it wears out and needs replacement.
- Design fee: If you're providing design services, charge $500–$2,500 depending on complexity. Credit it toward the project if they hire you for the installation.
Track every project's actual cost versus estimate. A job cost estimator keeps you honest and helps you refine your pricing over time.
Seasonal pricing strategy
In markets with distinct seasons, your pricing should reflect demand. Spring and fall are peak installation seasons — price at full margin. Mid-summer (too hot to plant) and late fall (season winding down) are opportunities for off-peak pricing that keeps your crew busy without discounting your best work.
How to present landscaping estimates
Landscaping is visual. The best proposals include:
- A design rendering or sketch. Even a simple hand-drawn plan helps customers visualize the result. Digital renderings (from apps like iScape or Vectorworks) close more jobs.
- Phased options. Not everyone can afford the full backyard transformation at once. Present Phase 1 (patio + basic planting, $8,000), Phase 2 (retaining wall + lighting, $6,000), Phase 3 (irrigation + additional planting, $4,000). The customer gets the full vision and a manageable path to get there.
- Maintenance plan. Every installation project should include a proposal for ongoing maintenance. This converts a one-time project into a monthly recurring revenue stream.
Mistakes that kill your margin
- Underestimating prep work. Site clearing, grading, and excavation often take longer than the actual installation. Price the unglamorous work as carefully as the pretty stuff.
- Not accounting for weather days. Outdoor work loses days to rain, heat, and wind. Build 10–15% time buffer into multi-day projects.
- Free design work. If you're spending 4 hours on a design for a customer who's getting three bids, two-thirds of that design time is unpaid. Charge for design or limit your upfront investment to what a prospect has earned.
- No plant warranty terms. Offering a 1-year plant warranty is standard, but define the terms. Does it cover improper watering by the homeowner? Drought? Animals? Get it in writing.
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Backyard landscaping in 2026 ranges from $1,000 for basic planting to $45,000+ for full outdoor living spaces. It's one of the most profitable segments in residential contracting when you price it right. Know your material costs, track your labor hours, account for the variables, and present your work as an investment rather than an expense. A margin calculator is your best friend on every bid.
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