Short answer
An arborist day rate is one crew day of loaded wages, plus the day's equipment and running costs, plus overhead per crew hour, divided by one minus your margin. Example: three people for 8 hours with $289.00 of equipment and running costs break even at $1,535.08 and sell at $2,257.47.
- Assumed: a $26 average wage plus 42% burden is $36.92 an hour; overhead adds $15 per crew hour.
- Owned chipper, truck and gear cost $126 per working day on the assumed figures, before fuel.
- The example day rate is $2,257.47: $282.18 per clock hour, $94.06 per person per hour.
- A half day prices at $1,494.56, 66% of the day rate, because equipment and the dump run do not halve.
- At 160 billable days the same crew needs $2,346.81 a day; at 220 days, $2,127.52.
On this page
- Arborist day rate formula: one crew day, line by line
- Arborist day rate calculator: the price to quote is the day rate
- Equipment as a cost per working day: owned, rented, and why it is not profit
- Tree crew day rate by crew size
- How billable days change the day rate
- Half-day, hourly and minimum-call rates from the day rate
- How to price tree work from the day rate
- Arborist job costing: check the day rate against a finished job
- Safety and training time the day rate has to carry
- Excel formulas for a day rate sheet, the markup mistake, and where to keep it
- Step-by-step
- FAQ
Arborist day rate formula: one crew day, line by line
A day rate is what one crew must bring in for one paid day. Build it from three costs, then divide by one minus your margin.
- Labour = hours in the day x workers x average wage x (1 + burden %).
- Equipment and running costs = what the chipper, truck and gear cost per working day, plus fuel, chain and tipping.
- Overhead = crew hours x (yearly overhead / sellable crew hours).
- Day rate = (labour + equipment and running costs + overhead) / (1 - margin).
I build pricing maths; I do not climb trees. Every wage, cost and percentage below is an assumption for one three-person climbing crew. Replace each with your payroll, invoices and logbook.
| Input | Assumed |
|---|---|
| Wages: climber and two groundworkers | $32 + $24 + $22, average $26 |
| Labour burden | 42%, so $36.92 loaded |
| Paid hours in the day, yard to yard | 8 |
| Yearly overhead without equipment: office, liability insurance, yard, phones, marketing | $64,800 |
| Billable crew days a year | 180 |
| Target margin | 32% |
The calculator takes one wage, so use the crew's average. Burden is your own figure: workers' compensation rates for tree work vary by state and by policy, so read it off your payroll and insurance bills. Overhead per crew hour is $64,800 / (3 people x 180 days x 8 hours = 4,320 hours) = $15.
Arborist day rate calculator: the price to quote is the day rate
Set hours to 8 and workers to the crew size, and type the day's equipment and running costs in the Materials box. The "Price to quote" line is then the day rate. It opens on the example and shows $2,257.47.
| Line | Per day |
|---|---|
| Chipper, owned | $40 |
| Chip truck, owned | $66 |
| Saws, ropes and climbing gear | $20 |
| Fuel: truck, chipper, saws | $85 |
| Chain, bar oil and mix | $18 |
| Tipping fee, one load | $60 |
| Total | $289 |
Worked example: One crew day, three-person climbing crew: 8 paid hours each at a $26 average wage; Materials = the day's equipment and running costs, $289 (every input is an assumption; the yearly row assumes 5 crew days sold a week)
| Item | Value |
|---|---|
| Workers (input) | 3 |
| Hourly wage paid (input) | $26.00 |
| Labour burden % (input) | 42% |
| Materials (input) | $289.00 |
| Overhead for the year (input) | $64,800.00 |
| People in the field (input) | 3 |
| Billable days a year (input) | 180 |
| Target margin % (input) | 32% |
| Jobs a week (input) | 5 |
| Hours on the job (input) | 8 |
| Loaded labour rate (per hour) | $36.92 |
| Crew-hours | 24 |
| Labour cost | $886.08 |
| Overhead per sellable hour | $15.00 |
| Overhead share | $360.00 |
| Break-even cost | $1,535.08 |
| Price to quote | $2,257.47 |
| Profit on the job | $722.39 |
| Price if you MARK UP instead | $2,026.31 |
| Margin you actually keep with markup | 24.24% |
| Lost per job by marking up | $231.16 |
| Lost per year by marking up | $60,102.90 |
Computed with the same formulas as the free calculators on this site. Change any input in the calculator above to see your own numbers.
Check it: 24 crew hours x $36.92 = $886.08 of labour. Overhead is 24 x $15.00 = $360.00. With $289.00 of equipment and running costs, break-even is $1,535.08. Divided by 0.68, the day rate is $2,257.47.
Equipment as a cost per working day: owned, rented, and why it is not profit
An owned machine costs money every day it works, even with no loan on it. Turn each one into a figure per working day and put it in the day rate as a cost.
Mississippi State University Extension's machinery cost publication gives the straight-line method: "(initial purchase cost – salvage value) / useful life = annual depreciation expense". It was written for farm machinery; the arithmetic is the same for a chipper. I add yearly repairs and insurance, then divide by working days.
| Machine | (Purchase - resale) / years + repairs + insurance | Per year | Per working day |
|---|---|---|---|
| Chipper | ($48,000 - $19,200) / 8 years + $2,700 + $900 | $7,200 | $40 |
| Chip truck | ($62,000 - $18,800) / 10 years + $4,500 + $3,060 | $11,880 | $66 |
| Bucket truck | ($110,000 - $38,000) / 10 years + $6,300 + $3,600 | $17,100 | $95 |
| Saws, ropes and climbing gear | replaced each year | $3,600 | $20 |
The same publication lists interest, taxes and housing as ownership costs too. If you pay loan interest or yard rent for a machine, add it to the yearly figure. This is a pricing figure, not a tax deduction: the IRS calls depreciation "the recovery of the cost of the property over a number of years" under its own rules, so ask your accountant about the tax side.
Rented. A rented machine needs no formula: the day's rental invoice is a Materials line. With an assumed $350 lift rental on top, the example day becomes $2,772.18, $514.71 more, because the margin is applied to the rental too.
Why it is not profit. Leave the $126 of owned equipment out and the day prices at $2,072.18, $185.29 lower. Against the true break-even that keeps 25.9%, not 32%. The gap is the money that replaces the chipper. For a stump grinder's owned and rented hour, see the stump grinding pricing guide.
Tree crew day rate by crew size
Each crew has its own wages and its own equipment, so each needs its own day rate. Overhead stays at $15 per crew hour in every row.
| Crew | Wages (average) | Equipment and running costs | Break-even day | Day rate | Per person per hour |
|---|---|---|---|---|---|
| 2-person ground crew, chipper and truck | $24 + $22 ($23) | $258 | $1,020.56 | $1,500.82 | $93.80 |
| 3-person climbing crew (the example) | $32 + $24 + $22 ($26) | $289 | $1,535.08 | $2,257.47 | $94.06 |
| 4-person crew with an owned bucket truck | $32 + $28 + $24 + $22 ($26.50) | $419 | $2,103.16 | $3,092.88 | $96.65 |
The ground crew drops the climber and the climbing gear. The four-person row adds an operator at $28, $95 a day for the bucket truck and more fuel. Sending the bucket crew to a job quoted at the climbing crew's rate gives away $835.41 a day.
Try it with your numbers — free
The free calculator does this whole method in about a minute: loaded labour, overhead share, break-even and the price to quote at your margin. No signup, nothing to download, and your numbers stay in your browser.
Open the free tree removal pricing calculator →Get the free spreadsheetWant it built around your own rates, services and branding? Done-for-you custom calculator ($497).
How billable days change the day rate
Rain, wind, breakdowns and unsold days cut the days a crew can bill. Overhead and equipment are then spread over fewer days, and the rate has to rise.
| Billable crew days a year | Overhead per crew hour | Owned equipment and running costs per day | Break-even day | Day rate |
|---|---|---|---|---|
| 160 | $16.88 | $304.75 | $1,595.83 | $2,346.81 |
| 180 | $15 | $289 | $1,535.08 | $2,257.47 |
| 200 | $13.50 | $276.40 | $1,486.48 | $2,186 |
| 220 | $12.27 | $266.09 | $1,446.72 | $2,127.52 |
Between 220 and 160 days the rate moves by $219.29 a day. Count last year's invoiced crew days and use that number in the "Billable days a year" box. If you pay the crew on rained-off days, that pay is overhead: add it to the yearly overhead figure.
Half-day, hourly and minimum-call rates from the day rate
The hourly rate is the day rate divided by hours. A half day is not half the price, because the equipment is tied up and the dump run still happens.
| Rate | Working | Result |
|---|---|---|
| Crew per clock hour | $2,257.47 / 8 | $282.18 |
| Per person per hour (charge-out rate) | $2,257.47 / 24 crew hours | $94.06 |
| Half day | 4 hours on site + 1 hour of driving and dump run, a full day of owned equipment, half the fuel and chain | $1,494.56 |
| Minimum call | 1 hour on site + 1 hour of driving, a quarter of the equipment day, one tipping fee | $592.68 |
| Consultation visit, climber alone | 1.5 hours door to door at $32, $12 of fuel | $150.97 |
Half the day rate would be $1,128.74; the half day needs $1,494.56. If a second half-day job fills the afternoon, the equipment is shared and you can come down. The charge-out rate of $94.06 against a $26 wage is burden, equipment, overhead and margin. I quote no market rate: yours comes from your costs.
How to price tree work from the day rate
Estimate the job in crew-day hours, yard to yard, and multiply. Price = day rate x hours / 8, plus job-specific extras as their own lines.
A job estimated at 5 hours for the example crew: $2,257.47 x 5 / 8 = $1,410.92. Extras that only this job needs, such as a crane, traffic control or a permit, are not in the day rate. Add the invoice as a line. Run through the same margin, an assumed $600 crane invoice becomes $882.35 and the quote $2,293.27.
The estimate of hours is where the skill is, and it is yours. For one removal priced from tree size, access and risk, use the tree removal pricing guide. For a per-tree trimming list by height, see how much to charge for tree trimming.
Arborist job costing: check the day rate against a finished job
After the job, multiply the hours it really took by your cost per crew clock hour, add the real fees, and compare with the price charged. Cost per clock hour is the break-even day / 8: $1,535.08 / 8 = $191.89.
| Job on estimate | Job that ran over | |
|---|---|---|
| Hours, yard to yard | 5 | 7 |
| Tipping fees beyond the day's one | $0 | $60 |
| Actual cost | $959.43 | $1,403.20 |
| Price charged | $1,410.92 | $1,410.92 |
| Profit | $451.49 | $7.72 |
| Margin kept | 32% | 0.5% |
Worked example: Job costing after the job: a 5-hour estimate that took 7 hours and a second tipping fee. Break-even here is the job's actual cost; the price actually charged was $1,410.92 (assumed inputs)
| Item | Value |
|---|---|
| Workers (input) | 3 |
| Hourly wage paid (input) | $26.00 |
| Labour burden % (input) | 42% |
| Materials (input) | $312.88 |
| Overhead for the year (input) | $64,800.00 |
| People in the field (input) | 3 |
| Billable days a year (input) | 180 |
| Target margin % (input) | 32% |
| Jobs a week (input) | 1 |
| Hours on the job (input) | 7 |
| Loaded labour rate (per hour) | $36.92 |
| Crew-hours | 21 |
| Labour cost | $775.32 |
| Overhead per sellable hour | $15.00 |
| Overhead share | $315.00 |
| Break-even cost | $1,403.20 |
| Price to quote | $2,063.52 |
| Profit on the job | $660.33 |
| Price if you MARK UP instead | $1,852.22 |
| Margin you actually keep with markup | 24.24% |
| Lost per job by marking up | $211.30 |
| Lost per year by marking up | $10,987.84 |
Computed with the same formulas as the free calculators on this site. Change any input in the calculator above to see your own numbers.
Two extra hours and one more load cost $443.77 and took the margin from 32% to 0.5%. In the example table, read "Break-even cost" as the actual cost; its "Price to quote" is what the job should have been quoted at. Log hours per job and feed them into the next estimate. The job costing spreadsheet guide has the general estimate-versus-actual method.
Safety and training time the day rate has to carry
Safety time is paid time, so it sits inside the 8 hours or comes off billable days. OSHA's tree care hazards page says: "Many hazards in the tree care industry are potentially fatal. Overhead power lines, falling branches, and faulty safety equipment are just a few of the dangers."
- Daily checks. For a bucket truck, 29 CFR 1910.67 says "Lift controls shall be tested each day prior to use". Those minutes are part of the paid day.
- Training. The same rule says "Only trained persons shall operate an aerial lift." Training days are paid and not billed: lower your billable days.
- Fall arrest gear. It requires a personal fall arrest or travel restraint system "when working from an aerial lift". Gear is in the equipment table above.
OSHA's tree care standards page says the industry "must comply with all the general industry standards (29 CFR 1910)" and that State Plans "may have different or more stringent requirements". Check your state. Work near power lines has its own rules; read them before quoting it.
Excel formulas for a day rate sheet, the markup mistake, and where to keep it
Layout: inputs in column B, one per row, as each formula's note lists them.
Equipment cost per working day
=ROUND(((B2-B3)/B4+B5+B6)/B7,2)B2 = purchase price, B3 = resale value, B4 = years kept, B5 = repairs a year, B6 = insurance a year, B7 = working days a year. One row per machine.
Break-even day
=B8*B9*B10*(1+B11)+B12+B8*B9*B13B8 = hours in the day, B9 = workers, B10 = average wage, B11 = burden %, B12 = equipment and running costs for the day, B13 = overhead per crew hour. Put in B14.
Day rate
=ROUND(B14/(1-B15),2)B15 = margin %. Put in B16. Crew per clock hour is =ROUND(B16/B8,2).
Job price from the day rate
=ROUND(B16*B17/B8+B18,2)B17 = estimated hours yard to yard, B18 = extras as priced lines.
Margin kept on a finished job
=(B19-(B20*B14/B8+B21))/B19B19 = price charged, B20 = actual hours, B21 = actual fees beyond the day's. Format as a percentage.
The mistake: adding 32% to the break-even day where you should divide. That bills $2,026.31 and keeps 24.24%. It is $231.16 short per crew day, $60,102.90 a year at 5 days a week.
| Option | Cost | Suits |
|---|---|---|
| Tree service pricing calculator | Free, no signup | One job at a time on the same maths: crew hours, disposal and consumables, break-even and the price to quote |
| Job Pricing Starter | Free | The same job maths on one sheet for Excel or Google Sheets |
| Done-for-you custom calculator | $497 one-time | A workbook built around your own labour tasks, equipment and rates, with a branded quote page and a job log |
Neither free tool has an equipment-per-day cell: work that figure out as above and type it in as materials. Put on your rate sheet: a day rate per crew, the hourly and half-day rates, the minimum call, the consultation visit, and the billable days and equipment figures they were built on, with the date.
Step-by-step: Arborist Day Rate Calculator: Build a Tree Crew's Day Rate From Costs
- Cost the crew's day. Hours in the paid day x workers x average wage x (1 + burden %).
- Cost the equipment per working day. For each owned machine: ((purchase - resale) / years + repairs + insurance) / working days. Add fuel, chain and tipping.
- Add overhead. Crew hours x (yearly overhead without equipment / (people x billable days x 8)).
- Divide by one minus margin. Break-even day / (1 - margin); for 32%, divide by 0.68. That is the day rate.
- Derive the part-day rates. Day rate / 8 per clock hour; price the half day and the minimum call with their own equipment and dump lines.
- Cost finished jobs. Actual hours x cost per clock hour + actual fees, against the price charged. Correct the next estimate.
Run your own numbers — free
The free calculator does this whole method in about a minute: loaded labour, overhead share, break-even and the price to quote at your margin. No signup, nothing to download, and your numbers stay in your browser.
Open the free calculator →Get the free spreadsheetWant it built around your own rates, services and branding? Done-for-you custom calculator ($497).
Frequently asked questions
How do I calculate an arborist day rate?
Add one day of loaded crew wages, the day's equipment and running costs and overhead for the crew's hours, then divide by one minus your margin. On this page's assumptions a three-person crew breaks even at $1,535.08 a day and the day rate is $2,257.47.
How much do arborists charge per hour?
Derive it from the day rate; this page quotes no market figure. On the assumed inputs the crew charges $282.18 per clock hour, which is $94.06 per person per hour. Your wages, equipment and billable days will give a different number.
Is a half day half the day rate?
No. The equipment is tied up for the day and the drive and dump run still happen. On the assumed inputs a half day prices at $1,494.56, which is 66% of the $2,257.47 day rate. Come down only when a second job fills the rest of the day.
How much does an arborist charge to look at a tree?
Price a consultation as hours from the same costs. With one person for an assumed 1.5 hours door to door at a $32 wage and $12 of fuel, the visit breaks even at $102.66 and prices at $150.97.
How do I price tree removal jobs from a day rate?
Estimate the hours yard to yard and multiply: day rate x hours / 8, plus extras such as a crane as their own lines. A 5-hour job at the example rate is $1,410.92. The tree removal pricing guide on this site covers sizing the job.
What is arborist job costing?
Comparing what a finished job cost with what you charged. Multiply actual hours by your cost per crew clock hour, $191.89 in the example, and add actual fees. A 5-hour quote that took 7 hours kept 0.5% in place of 32%.
Should chipper and truck costs go in overhead or in the day rate?
Either works if they are counted once. This page puts them in the day's costs, $126 per working day on the assumed figures, so each crew carries its own machines. Left out, the example day is underpriced by $185.29.
Sources
- OSHA: Tree Care Industry, Hazards and Solutions — Many hazards in the tree care industry are potentially fatal; overhead power lines, falling branches and faulty safety equipment
- OSHA: Tree Care Industry, Standards — The tree care industry must comply with all the general industry standards (29 CFR 1910); State Plans may have different or more stringent requirements
- OSHA: 29 CFR 1910.67, Vehicle-mounted elevating and rotating work platforms — Lift controls shall be tested each day prior to use; only trained persons shall operate an aerial lift; personal fall arrest or travel restraint system when working from an aerial lift
- Mississippi State University Extension: Farm Machinery Cost Calculations (P3543) — Straight-line depreciation = (initial purchase cost - salvage value) / useful life; ownership costs include depreciation, interest, taxes, insurance and housing
- IRS: Topic no. 704, Depreciation — Depreciation is the recovery of the cost of the property over a number of years
I'm not a contractor, landlord or accountant. I build the pricing maths, and every number on this page shows its working so you can check it instead of trusting it. Guides are drafted with AI assistance; every worked figure is computed by the same code as the free calculators. How these guides are made → · Watch the breakdowns on YouTube →