How Much Money Can You Make Owning an Excavation Business?
- Nate Jones
- Jul 4
- 2 min read
If you're thinking about starting an excavation company, one of the most important questions you’re probably asking is: “How much money can I actually make?” The good news is that excavation businesses can be highly profitable—especially when managed efficiently and backed by the right equipment, strategy, and insurance.
In this blog, we’ll break down potential earnings, profit margins, and the key factors that influence how much you can make as an excavation business owner. Plus, we’ll show you how Excavating Insurance Partners can help you protect your profits with the right insurance coverage.
Average Revenue for Excavation Businesses
Excavation businesses typically earn revenue based on the type and size of jobs they complete. Here’s a breakdown of average job earnings:
Basement Excavation: $10,000 – $30,000 per job
Land Grading: $1,000 – $3,000 per job
Foundation Preparation: $3,000 – $4,000 per job
Utility Trenching or Septic Installation: $2,000 – $10,000+ per job
👉 Want to learn more about services you can offer? Check out our blog on Types of Excavating Businesses.
Monthly and Annual Income Potential
Let’s say you complete the following jobs in a typical month:
1 Basement Excavation: $20,000
2 Land Grading Jobs: $4,000
3 Foundation Preps: $6,000
Total Monthly Revenue: ~$30,000 Estimated Monthly Profit: $18,000 – $20,000 Annual Profit Potential: $180,000 – $240,000+
Of course, your actual income will depend on your location, competition, pricing, and how efficiently you manage your operations.
Key Factors That Affect Profitability
1. Equipment Costs
Heavy machinery like excavators and skid steers can cost over $150,000 combined. Many new business owners choose to finance their equipment.
👉 Learn more in our blog: What Equipment Do I Need to Start an Excavating Company?
2. Operating Expenses
Fuel: $1,000 – $1,500/month
Maintenance and repairs
Insurance premiums
Employee wages (if applicable)
3. Insurance and Risk Management
Excavation is a high-risk industry. Without proper insurance, a single accident could wipe out your profits.
At Excavating Insurance Partners, we help you find the right:
Tips to Maximize Profit
Specialize in high-margin services like septic installation or commercial site prep
Invest in marketing to keep your schedule full
Use lead generation platforms like Contractor Back Office
Follow OSHA safety standards to avoid costly fines and downtime (OSHA Excavation Safety)
Download our e-book: How to Start an Excavating Business
Final Thoughts
Owning an excavation business can be a highly profitable venture—especially if you manage your costs, secure steady work, and protect your assets with the right insurance. With the right strategy, it’s possible to earn six figures annually and scale your business over time.
Ready to protect your profits? Contact Excavating Insurance Partners today for expert insurance solutions tailored to excavation contractors.
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