Tree Service profit margins

What one-owner tree service businesses report to the IRS, where the money goes on a tree service job, and a calculator to check your own margin.

84.3%Gross margin, IRS sector
21.2%Net margin incl. owner pay
$36,687Average receipts per return
What do you want to work out?
$
$
$
$
%
Leave at 15% if you do not know it yet. The business mode works it out.
Gross margin
35.7%
$1,250 over job costs
55.6%Markup
$725Net profit
20.7%Net margin
Free. Your numbers become an estimate you can send from your phone.

How we got this

  1. Job cost$1,200 materials + $900 labor + $150 other = $2,250
  2. Gross profit$3,500 − $2,250 = $1,250
  3. Gross margin$1,250 ÷ $3,500 price = 35.7%
  4. Markup$1,250 ÷ $2,250 cost = 55.6%
  5. Overhead share15% of $3,500 = $525
  6. Net profit$1,250 − $525 = $725 (20.7%)
MarkupGives a margin of
25%20%
33%24.8%
43%30.1%
50%33.3%
67%40.1%
100%50%

Tree Service profit margin benchmarks

The IRS reports what one-owner businesses filing Schedule C earn, by sector. Tree Service falls under Administrative and support services. For tax year 2023, 3,118,914 returns reported $114.4 billion in receipts, $17.9 billion in cost of sales and $24.2 billion in net income less deficit (the table gives thousands of dollars):

BenchmarkValue
Gross margin84.3%
Net margin, owner pay included21.2%
Average receipts per return$36,687
Average net income per return$7,769

The owner's own draw is not an expense on a Schedule C, so that net margin is mostly the owner's wage, not profit on top of it.

Where the money goes in tree service

Tree work is labor, heavy equipment and disposal, with high insurance costs. Removals near houses cost more in time and risk.

For a worked example, our tree removal cost calculator puts remove a medium tree, 30 to 60 ft at $442 to $885 a tree, typical $614, and treats about 75% of that as labor. On the typical price, that is about $461 of labor and $154 of materials, equipment and everything else, before your overhead and profit.

Where tree service margin leaks, and how to win it back

  • Disposal and chipping not priced in
  • Equipment rentals
  • Access problems found on the day
  • Stump grinding left off the quote
  • Insurance costs not spread across jobs

Ways tree services raise margin: price disposal and chipping into every quote; sell stump grinding with the removal; rent heavy equipment only for jobs that need it; note access problems on the estimate visit.

Check your tree service prices against the costs

The typical national prices from our sourced calculators are a check on whether your prices leave room for margin:

ServiceTypicalRange
Remove a small tree, under 30 ft$281$150 to $435 a tree
Remove a medium tree, 30 to 60 ft$614$442 to $885 a tree
Remove a large tree, 60 to 80 ft$1,032$885 to $1,180 a tree
Very large tree removal, over 80 ft$1,615$1,230 to $2,000 a tree
Trim a tree$491$285 to $700 a tree
Grind one stump$275$150 to $400 a stump

Work out the margin on each line of your menu, not just the big jobs. The usual tree service menu: remove a small tree, under 30 ft; remove a medium tree, 30 to 60 ft; remove a large tree, 60 to 80 ft; very large tree removal, over 80 ft; trim a tree; crown raising and clearance; deadwood removal; storm cleanup; grind one stump; brush chipping and haul away; firewood splitting.

Overhead comes out of the margin before profit. In tree service it includes general liability insurance, which Insureon's customers who are tree services pay an average of $156 a month for; commercial auto at $299 a month on the same figures.

Work out your own margin

Put one recent tree service job into the calculator above, or switch it to "My margin for the year" to set your year next to the IRS benchmark. A 50% markup is a 33% margin; the markup calculator shows the rest.

Sources

Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.

FAQ

What is a good profit margin for a tree service business?

As a benchmark, one-owner businesses in administrative and support services reported a 84.3% gross margin and a 21.2% net margin to the IRS for 2023, with the owner's pay inside that net figure.

How can tree services raise their margin?

Price disposal and chipping into every quote, sell stump grinding with the removal and rent heavy equipment only for jobs that need it.

What are the biggest costs in tree service?

Tree work is labor, heavy equipment and disposal, with high insurance costs. Removals near houses cost more in time and risk.

Where do tree services lose margin?

Disposal and chipping not priced in, equipment rentals and access problems found on the day.

We know what works. Leave it to Koira.

☼⚙
Standard⚡ Turbo
● Koira did it● You by hand
Today $9,300$8,100 / $1,200
This week $25,050$18,570 / $6,480
This month $69,300$46,150 / $23,150
Money, just now
Reminded Sean Love, $1,850. Polite reminder with the pay link.
Bids, 9:44 am
Nudged Dana on the kitchen bid. Day 3 follow up. She opened it at 9:12.
Convos, 9:41 am
Texted back a missed call. Walk through booked Thu 10:00.
Tree Service Profit Margins: Benchmarks and a Calculator | Koira