How Much Can an Arborist Business Owner Make? $90k Salary Plan
You’re planning owner pay before the tree care business has steady crew utilization, and that’s the right time to be strict In this five-year researched scenario, the owner/lead arborist salary is $90,000 per year, EBITDA moves from -$47,000 in Year 1 to $382,000 in Year 2, and the model reaches breakeven in Month 8
Owner income$90k baseNet margin-10% to 56%Revenue for target pay$554kBusiness difficultyHard
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Owner income calculator
Estimate owner take-home and the target-pay gap from revenue, margin, costs, reserves, and target pay.
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Planning note: This is a researched planning estimate only. It is not guaranteed salary, tax advice, or owner distribution advice.
Want to see what drives owner income?
1
Pricing Mix
$960/$190/$2,160
Mixing more removal and storm work raises ticket size fast, so more gross cash reaches the owner after reserves.
2
Crew Utilization
2-12h
Keeping crews on billable jobs matters because pruning uses 2 hours and storm cleanup uses 12, so idle time cuts take-home fast.
3
Crew Output
5-12FTE
Payroll scales from 5 to 12 FTE across the plan, so every extra job per person lifts margin and owner pay.
4
Equipment Debt
$200K
The first $200K of trucks, chipper, grinder, trailer, and tools needs funding, so financing terms decide how much cash stays after reserves.
5
Insurance Safety
29%
Year 1 direct costs run 29% of revenue before fixed overhead, so tighter safety, disposal, and claim control protect take-home.
6
Customer Pipeline
$15K-$55K
Marketing rises from $15K to $55K while CAC improves from $150 to $120, and a cheaper pipeline leaves more cash for the owner after reserves.
Want to see the full owner-income case in Arborist Service?
For Arborist Service, profit is driven less by sales volume and more by keeping labor and job costs tight; if you want the cost base, see How Much Does It Cost To Open Your Arborist Service Business?. In this model, direct cost load improves from 290% in Year 1 to 240% in Year 5, while EBITDA moves from -$47,000 to $2.203 million. The biggest margin drains are payroll, disposal fees, fuel, subcontractors, insurance, equipment maintenance, vehicle leases, and underpriced removals, with fixed overhead at $7,750 per month before wages.
Margin drivers
Direct cost load: 290% to 240%
EBITDA turns from -$47,000 positive
Fixed overhead is $7,750 monthly
Payroll is the biggest reducer
Cost leaks
Watch disposal fees on every job
Track fuel and vehicle lease spend
Charge more for removals that run long
Cut subcontractor use where possible
Can an arborist business make a full-time income?
Yes, an Arborist Service can make a full-time income, but the model needs cash runway first: owner salary is $90,000 from Month 1, while Year 1 EBITDA is -$47,000. Breakeven starts in Month 8, so track the right driver early with What Is The Most Important Measure Of Success For Arborist Service?. The real constraint is cash, because minimum cash need peaks at $668,000 in Month 7 and payback takes 25 months.
Income Reality
Pay owner $90,000 from Month 1
Absorb -$47,000 Year 1 EBITDA
Reach breakeven in Month 8
Wait 25 months for payback
Watch These
Protect gross margin
Control payroll load
Fund equipment reserves
Plan for seasonality
How much revenue does a tree service need to make $100k owner income?
If an Arborist Service wants the owner to take home $100,000, Year 1 revenue is roughly $589,000 before equipment reserves, debt, and taxes. Here’s the quick math: $210,000 non-owner payroll + $93,000 fixed overhead + $15,000 marketing + $100,000 owner pay, then divide by the 710% contribution left after 290% direct costs; it’s a planning target, not a guarantee.
Target pay first
$100,000 owner income target
$589,000 revenue estimate
710% contribution left
290% direct costs upfront
What the math includes
$210,000 non-owner payroll
$93,000 fixed overhead
$15,000 Year 1 marketing
Not a guarantee after reserves, debt, taxes
Key Takeaways
Pricing and job mix drive most income swing.
Billable crew hours matter more than raw leads.
Payroll and equipment can quickly erase distributions.
Safety and booked gross profit protect margin.
Compare lean, base, and high-performing owner-income scenarios
Owner income scenarios
Owner pay swings because payroll, capex, and fixed overhead are heavy before the crew is fully used. By Year 5, higher pricing and lower CAC can support more profit.
Three owner pay cases from launch to mature year.
Scenario
Low CaseLean launch
Base CaseBase case
High CaseUpside case
Launch model
This is the first-year launch case, where owner pay is limited to the modeled $90,000 salary and EBITDA is still negative.
This is the second-year case, where the modeled $90,000 salary sits alongside positive EBITDA and a tighter CAC.
This is the Year 5 case, where the strongest modeled earnings path supports the same $90,000 salary.
Typical setup
The team is still ramping, payroll is about $300,000, capex is about $200,000, and cash needs peak at $668,000 before Month 8 breakeven.
The business adds more staff, pushes payroll to about $410,000, and runs with a 278% direct cost load, $25,000 marketing, and $140 CAC.
The mature setup carries about $680,000 payroll, a 240% direct cost load, $55,000 marketing, and $120 CAC.
Use this to stress-test launch cash, owner pay stability, and the point where breakeven slips past the first operating months.
Use this for a realistic operating plan when the crew is fuller, marketing is higher, and profit starts to support owner cash.
Use this to test upside planning, debt capacity, and whether distributions can happen after taxes and reserves.
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Planning note: These scenario ranges are researched planning assumptions, not guaranteed earnings, salary promises, tax advice, or distributions; owners should still check debt service, taxes, and reserve needs before taking cash out.
Arborist Service Core Six Income Drivers
Pricing And Job Mix
Pricing and Job Mix
Income here comes from average ticket size and scope control. In Year 1, tree removal is 8 hours × $120 = $960, pruning is 2 hours × $95 = $190, and storm cleanup is 12 hours × $180 = $2,160. By Year 5, tickets rise to $1,215, $275, and $2,000, while pruning reaches 45% of mix. Underpriced removals can wipe out owner distributions fast.
The inputs that matter are job type, quoted hours, disposal, cleanup, and any extra crew time. A low bid with scope creep turns into weak gross margin, meaning less cash for payroll, trucks, and owner pay. One bad removal can erase the profit from several small pruning jobs.
Protect Margin by Job Type
Track average ticket and actual hours by service line. Price removal, pruning, and storm cleanup separately, and do not bundle away cleanup, hauling, or disposal work for free.
Log quoted hours versus actual hours.
Flag every change in scope.
Watch pruning mix move to 45%.
Raise price on risky removals.
Shift more work into recurring pruning contracts where the scope is cleaner and the ticket is easier to control. If storm cleanup or removals need extra labor, disposal, or risk cover, reprice before the crew starts. That protects cash flow and keeps owner pay from leaking into unbilled hours.
Insurance, Safety, And Risk
Safety And Risk Costs
Safety is a margin line, not optional overhead. In Year 1, project-specific insurance can eat 75% of revenue, then ease to 60% by Year 5. Add $800 per month in fixed business insurance, or $9,600 per year, plus workers’ compensation and licensing costs. If a job is high-risk or claims rise, take-home drops before taxes even when sales look strong.
Here’s the quick math: at $100,000 of revenue, a 75% project insurance load leaves only $25,000 before other operating costs. Safer crews matter because fewer delays, fewer damaged sites, and less unplanned subcontractor use keep more of each job in the owner’s pocket.
Track Risk, Not Just Revenue
Measure insurance as a percent of booked revenue by job type. Separate removal, pruning, and storm cleanup, since high-risk removals can change the rate fast. Track claims history, workers’ compensation class, license needs, and how often you need outside labor after damage or delays. If those inputs drift up, owner pay gets squeezed even if the calendar is full.
Watch project insurance by service line.
Review claims after every incident.
Price high-risk jobs before booking.
Train crews to avoid damage.
Track subcontractor use by job.
Customer Pipeline
Booked Job Pipeline
Leads only pay when they turn into booked, profitable jobs. Here, the marketing budget rises from $15,000 in Year 1 to $55,000 in Year 5, while CAC (customer acquisition cost) improves from $150 to $120. That works out to about 100 acquired customers in Year 1 and about 458 in Year 5 from paid marketing math.
Repeat pruning contracts help smooth cash flow and owner pay because they fill slower months. Storm cleanup can be high-ticket, but it’s uneven, so lead volume can look strong while take-home income stays weak if bids miss, travel runs eat time, or jobs do not cover field labor and disposal.
Measure booked gross profit per source
Track lead-to-booking rate, CAC, and gross profit per booked job by source. Here’s the quick math: $15,000 at $150 CAC implies about 100 customers; $55,000 at $120 CAC implies about 458 customers. Owner income rises only when those customers book work that leaves margin after crew time and job costs.
Push repeat pruning contracts first, then price storm cleanup for the risk and effort. One clean rule: do not scale lead volume faster than booked gross profit.
Equipment Costs And Reserves
Equipment Costs and Reserves
This driver includes the lift truck, chipper, stump grinder, trailer, safety gear, office setup, drone, and arborist tools, plus lease and maintenance cash outflow. With $1,800 monthly vehicle lease payments and $1,200 monthly maintenance contracts, fixed equipment cost is $3,000/month or $36,000/year. That cash comes out before owner pay, so a busy month can still produce weak distributable income.
The $200,000 startup capex does not stop after purchase. Paid-off assets still need replacement reserves, and skipped maintenance turns into downtime, missed jobs, and higher labor waste. The key inputs are billed jobs, equipment uptime, repair spend, and reserve funding. If trucks or tools sit, revenue stays flat but profit falls fast.
Track downtime and fund replacement reserves
Set a monthly equipment reserve and review it against actual use. Track lease payments, maintenance spend, repair calls, and downtime days by asset. One clean number matters: revenue lost per idle day. If a lift truck or chipper misses jobs, the reserve is too thin or maintenance timing is off.
Track downtime by machine
Log repair cost per job
Reserve cash for replacements
Compare idle days to booked jobs
Labor Productivity
Labor Productivity
Labor productivity is how much billable work each paid crew hour creates. Here, payroll rises from $300,000 in Year 1 to $680,000 in Year 5, with owner pay included at $90,000. If trained arborists, ground crew, office, and sales staff do not lift completed jobs, the extra $380,000 payroll can squeeze the owner’s draw fast.
Watch billable hours per job, return visits, travel time, and dispatch misses. Productivity depends on safe climbing, clean job setup, and fewer rework trips. If payroll burden is not already inside labor cost, model it separately so margins and cash flow do not look better than they are.
Cut Paid Time Waste
Track payroll as a share of booked work, then compare it to completed, collected jobs. Split out owner salary from non-owner payroll so you can see the real operating cost. The key inputs are trained crew hours, setup time, route efficiency, and repeat visits. One clean line: more billable hours per paid hour = more owner income.
Use the dispatch log to find lost time from weather, travel, and reschedules. If a crew needs extra visits to finish the same tree, labor cost rises without more revenue, so owner pay shrinks. Keep safety high, but cut handoffs and idle time; that is where the margin is won.
Crew Utilization
Crew Utilization
Crew Utilization is the share of paid crew time that turns into safe, billable field work. For arborists, that means billable hours per job: tree removal moves from 80 to 90 hours, pruning from 20 to 25, and storm cleanup from 120 to 100. More booked days lift EBITDA only if weather, travel, estimates, cancellations, and disposal runs do not eat the schedule.
Here’s the quick math: if crews are busy but half the day is driving, waiting, or rework, the owner still pays wages, fuel, and truck costs without matching revenue. This driver changes take-home income because extra billable hours spread fixed overhead across more work and lift cash flow. If safety capacity or equipment is thin, utilization gains can turn into overtime and lower margin.
Track Billable Field Time
Track billable field time daily and split it into sold work, travel, estimates, disposal, weather delays, and cancellations. Use the same job codes for removal, pruning, and storm cleanup so you can see where hours leak. The control point is crew-day planning, because one more booked job helps only when the truck, chipper, and safe staffing are already available.
Paid crew hours
Billable field hours
Travel and disposal time
Weather and cancellation hours
Watch billable field hours ÷ paid crew hours by service line and compare them with completed jobs and owner draw. If pruning rises from 20 to 25 hours while storm cleanup falls from 120 to 100, that points to better mix and less waste. If dispatch slips, margin usually shows it fast.
