How much does a Stump Grinding cost to buy?

A typical Stump Grinding sells for 1.5x to 2.5x annual revenue. With average revenue of $175K, expect to pay $263K to $438K.

How much does it cost to start a Stump Grinding?

Startup costs range from $6K to $50K depending on location, equipment, and scale.

Service

/100 score

Excellent

Stump Grinding

Q: What are the profit margins for a Stump Grinding?

The average profit margin for a Stump Grinding is around 40%. Major costs: equipment loan/depreciation (15%), fuel (8–10%), blade/carbide replacements (5%), liability insurance ($3K–$5K/year), marketing (5–10%). A solo operator running 3 jobs/week at $275 average generates ~$43K in year one; scaling to 5–6 days/week with multiple crews can reach $300K–$400K revenue.

Turn dead wood into cash — one stump at a time

Stump grinding is a specialized outdoor service that removes tree stumps left after trees are cut down. A single grinder mounted on a trailer is all you need to earn $100–$150/hour. Tree service companies frequently subcontract stump removal, creating a built-in referral network from day one. With a used grinder costing as little as $6K, few legitimate service businesses start this lean.

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Avg Revenue

$175K

Profit Margin

40%

Acquisition Multiple

1.5x - 2.5x

Startup Cost

$6K - $50K

Difficulty

2/5

How It Works

A rotating drum with carbide teeth chews through stumps below ground level. Jobs typically take 15–60 minutes and average $200–$350 per stump. Operators charge by stump count, diameter, or hourly rate. Tree services refer stump work they don't want to handle, while direct homeowner calls come from Google and Nextdoor.

Revenue Range

Low End

$80K

Typical

$175K

High End

$400K

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 561730 · Landscaping Services

Deals tracked

545

181 in last 24 mo

Median loan

$539K

$237K–$1.2M p25/p75

Implied deal size

$634K

median · ~85% LTV

Charge-off rate

9.1%

of loans that finished

Deal Size Distribution

<$150K

$150K–500K

167

$500K–1M

119

$1M–2M

111

>$2M

Deal Flow Over Time

Deals per year · median loan

$400K

2020

$563K

2021

$618K

2022

$597K

2023

$510K

2024

107

$456K

2025

121

$1.8M

2026

12-month momentum

-59.7%

deal volume vs prior 12 mo

Median loan Δ

+78.5%

52 recent · 129 prior

Financing Profile

Median rate

10.00%

15% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

98%

of loans secured

Median jobs

supported per deal

Top lenders in this space

The Huntington National Bank53

Live Oak Banking Company23

First Internet Bank of Indiana13

BayFirst National Bank12

Brookline Bank, a Division of Beacon Bank and Trust12

Where deals happen

FL82

PA30

TX29

CO26

MI25

MN24

CA23

UT21

OH19

AZ18

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Dec 2025	FL	$1.9M	$2.3M	2	—
Dec 2025	FL	$475K	$559K	6	—
Dec 2025	CO	$1.4M	$1.6M	17	—
Dec 2025	GA	$3.0M	$3.5M	2	—
Nov 2025	FL	$1.7M	$2.0M	100	—
Nov 2025	UT	$4.7M	$5.6M	38	—
Nov 2025	FL	$2.1M	$2.5M	4	—
Nov 2025	MA	$2.2M	$2.6M	15	—
Nov 2025	AZ	$159K	$187K	7	—
Nov 2025	OH	$781K	$919K	20	—

Volume rank #11/534Deal-size rank #355/534Momentum rank #284p90 loan: $2.0MData as of Dec 2025

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

+Very low startup cost — used grinder and trailer under $10K
+Tree companies subcontract this constantly, so leads appear from day one
+30–50% profit margins on low overhead
+No license required in most states — just insurance
+One person can run 6–10 jobs per day once efficient

Cons

-Highly seasonal in cold climates — winter can be near-zero
-Physically demanding — equipment is loud and dusty
-Equipment maintenance is regular and critical
-Geographic range limited by drive time between jobs

Best For

Outdoorsy entrepreneurs wanting a lean, low-overhead service business; also great as an add-on to tree service or landscaping operations

Operating Costs

Major costs: equipment loan/depreciation (15%), fuel (8–10%), blade/carbide replacements (5%), liability insurance ($3K–$5K/year), marketing (5–10%). A solo operator running 3 jobs/week at $275 average generates ~$43K in year one; scaling to 5–6 days/week with multiple crews can reach $300K–$400K revenue.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

$-1019/mo

after debt service

Deal price — $610K

Range: $180K (1.5×) to $610K (2.5×+)

Down payment — 15% ($92K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 10.00%

SBA median for this category: 10.0%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$92K

15% equity injection

Loan amount

$519K

85% SBA-financed

Monthly payment

$7K/mo

$304K total interest

Monthly profit

$6K/mo

at 40% margin

Monthly cash flow after debt service

$-1019/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.