Landscape lighting has some of the best margins in the industry — when you price wire runs and transformer load correctly. Most contractors underprice both.
Landscape lighting is one of the highest-margin scopes in the outdoor living category. Material markups on fixtures are strong, wire runs are priced per linear foot, and the work is clean. But contractors who bid lighting jobs at a flat per-fixture rate leave money on every job when wire runs are long or the transformer needs to be oversized.
The right approach prices four things independently: fixtures, wire runs, transformer, and labor. Do it once and you will know exactly what any lighting job costs before you leave the site visit.
The Full Cost Breakdown
A residential landscape lighting system with 15–25 fixtures typically runs $3,500–$8,500 installed. Here is how the scope breaks down:
- LED fixtures: $35–$180 each depending on type and brand. Brass path lights (Kichler, VOLT Lighting) run $35–$65/fixture. Brass uplights run $55–$95. MR16 well lights, directional spotlights, and wall wash fixtures run $65–$180. Price from your actual supplier invoice — fixture costs vary widely by brand tier.
- Wire (12/2 or 14/2 low-voltage cable): $0.35–$0.65/LF for 12/2 direct-burial wire. Measure total wire run from transformer to each fixture. Add 15% for slack, buried routing around obstacles, and splices. Wire cost disappears when contractors eyeball run length.
- Transformer: $180–$650 depending on wattage and smart-home capability. A 150W transformer handles 10–15 LED fixtures with headroom. A 300W handles 20–30 fixtures. Smart transformers (VOLT Smart) with app control and sunset/sunrise timers run $350–$650. Size for 80% of transformer capacity maximum — never 100%.
- Installation labor: $35–$65 per fixture for placement, wire run, and connection. A one-man crew installs 8–12 fixtures per day on a standard residential property. Dense plantings, rock beds, and complex routing slow that to 5–8 per day.
- Transformer mounting and wiring to outlet: $75–$150 flat. Includes mounting bracket, outlet connection or junction box, and timer programming. If no outdoor outlet exists, coordinate with an electrician — that is a separate line item, not your scope.
- Night demo and adjustment visit: $150–$300. Always price a return visit for nighttime aim-and-adjust. You cannot aim uplights accurately during daytime installation. Clients who have never had professional lighting done do not know this — explain it when you present the scope.
Transformer Sizing: Why It Matters for Your Estimate
Undersized transformers are the most common callback in landscape lighting. The system flickers, dims at the end of long wire runs, or trips the thermal breaker when temperatures are high. Get the sizing right in the estimate and you never have this conversation.
Transformer load calculation:
- Add up total wattage of all fixtures (LED path light: 3–5W; LED uplight: 5–10W; LED spotlight: 8–15W).
- Multiply total fixture wattage by 1.25 — this is your minimum transformer size.
- Select the next transformer size above that number from your supplier. Never load a transformer above 80% capacity.
- If the client says they want to expand later, size up one more tier. Future-proofing is an easy upsell.
Example: 20 fixtures at an average of 7W each = 140W total. 140 × 1.25 = 175W minimum. Price a 300W transformer. The difference in cost between a 150W and 300W transformer is $80–$120. The cost of a callback to replace an undersized unit is far more.
Voltage Drop: The Other Problem Contractors Miss
Low-voltage lighting runs at 12V AC. Fixtures at the end of a long wire run receive less voltage than fixtures near the transformer due to resistance in the wire. This causes color temperature shift and brightness variation across the system. It is visible. Clients notice.
The solutions: use 12/2 wire instead of 14/2 for runs over 50 feet, wire in a T or loop configuration instead of a daisy chain for large systems, or specify LED fixtures with a wider input voltage range (10.8–15V). Mention voltage drop when you explain your wire spec to the client — it positions you as someone who thinks beyond just planting fixtures.
"An undersized transformer costs you a service call. A return-visit line item in the estimate costs the client $200. Only one of those shows up on your invoice."
Markup Strategy for Lighting Jobs
Fixture markup is where lighting margins are made. Contractor pricing on quality brass fixtures runs 30–50% below retail. Marking up to retail or above is standard in the industry. Do not feel pressure to pass contractor pricing to the client — you are providing design, labor, and a warranty on the work.
Wire is a commodity. Mark it up 20–30%. Transformers land in the middle — 35–50% markup is reasonable. Labor should carry 40–55% gross margin on the overall job. Landscape lighting margins, when priced correctly, run 50–60% gross. That is real money on a $6,000 job.
Stop pricing lighting by fixture count alone
Price wire, transformer, and labor as separate line items.
Ledge has assembly-based estimating for landscape lighting — enter fixture count, wire footage, and transformer wattage separately. The system calculates load, flags oversizing needs, and prices each component.
Book a Demo →Frequently Asked Questions
How much does landscape lighting installation cost?
A residential system with 15–25 fixtures typically runs $3,500–$8,500 installed, depending on fixture quality, wire run lengths, transformer size, and site complexity. High-end brass fixtures with smart transformer and full-property coverage can reach $12,000–$18,000. Build your estimate from fixture count, wire footage, and transformer spec — not a flat per-fixture average.
What size transformer do I need?
Add up total fixture wattage, multiply by 1.25, and select the next transformer size above that number. Never load a transformer above 80% capacity. A 150W transformer handles about 15 LED fixtures. A 300W handles about 25–30. When in doubt, size up — the cost difference is $80–$120 and a callback is far more expensive.
Should I charge for the night adjustment visit?
Yes. Price it as a line item: $150–$300 for a return visit to aim fixtures, adjust spread, and fine-tune timer settings. Explain to the client that uplighting cannot be properly aimed during daylight. This visit is what separates a professional install from a homeowner DIY job. Clients understand and accept the charge.
What wire gauge should I use for low-voltage lighting?
Use 12/2 direct-burial wire as your default, especially for runs over 50 feet. 14/2 is acceptable for short runs with few fixtures. The voltage drop difference between 12/2 and 14/2 over 100 feet with a 50W load is enough to cause visible brightness variation at end-of-run fixtures. Spec 12/2 and price accordingly — it costs about $0.10 more per LF.
Edgar Galindo
Co-founder, Ledge
Edgar built Ledge while running a landscape design-build company in Central Texas. Lighting was the scope that taught him wire run math — after one too many callbacks on transformers that were 20W short.