How Much Does It Cost to Install a Retaining Wall?

By Melanie Dawn

March 07, 2026

Not all yards are created equally. If yours looks more like a ski slope than a level oasis, you may want to think about retaining wall costs. Fire pits, swimming pools, patios and outdoor kitchens all need a level plot of land. Transforming hilly landscapes requires techniques like grading, terracing and constructing retaining walls to create a level area for entertainment.

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Figuring out your expected cost should be the first step in transforming your property into a beautiful and functional outdoor living space. This article covers everything, from the purpose of retaining walls to the cost of building one and the other factors you need to consider.

What Is the Purpose of a Retaining Wall?

Retaining walls are used to hold back soil. If you live on the top of a hill, gravity constantly creates soil pressure to pull the dirt underneath downward. Retaining walls are used as reinforcements to hold back tons of earth to prevent landslides that could damage your home’s foundation. Highly engineered, these walls can be constructed of wood, plastic, concrete, or even metal, and they have several different uses.

Creating a Functional Area

Retaining walls cut into sloped areas and hold back soil to create a flat, livable area. First, heavy equipment digs into the hillside. This creates a new dirt wall, which gets reinforced with building materials. The dirt from the lower area is then used to backfill and flatten the area on top of the wall. You’re left with a plateau both above and below the retaining wall.

Improving Drainage

Retaining walls also direct water flow away from your home’s foundation. Some even contain weep holes to allow trapped moisture to drain. Check with state and local regulations that define what you can and can't do.

Erosion Control

Heavy rain often washes away topsoil, leaving behind mud and creating an area without grass and other vegetation. Terracing a sloped yard helps slow down rainwater runoff, which gives the soil a chance to absorb water instead of washing away.

Landscaping

Another reason for retaining walls is to add features to your landscape. Use them to create flower beds, line walkways, create staircases, or install built-in lights.

How Much Does a Retaining Wall Cost to Build?

The average cost of a retaining wall is $ 35 to $65 (CAD 48 to CAD 66) per square foot. However, many contractors will charge a minimum fee for retaining wall projects. Based on the cost per square foot, a retaining wall measuring 25 feet long by 4 feet tall costs between $3,500 and $6,500 (CAD 4,788 to CAD 8,892), depending on the type of material.

When contractors create estimates for this type of project, they don’t charge a flat fee. Instead, they evaluate each detail and price the job by the square footage of the wall surface, which is calculated by multiplying the width by the length.

Retaining Wall Costs — By Material Type

One of the main factors affecting retaining wall costs is material. The type of material can affect the lifespan, installation process and the overall aesthetic of the design.

Wood or Landscape Timbers

Pressure-treated landscape timbers or railroad ties are the cheapest option when building a retaining wall. The cost is around $5 to $7 (CAD 6.86 to CAD 9.60) per square foot, depending on the cost of lumber. This type of material gives your landscape a more rustic look and the wood naturally blends well with plants and trees. Unfortunately, wood is the least durable option because it’s susceptible to rotting, moisture and insect damage.

Vinyl

Vinyl sheet piles are a lightweight, corrosion-resistant and eco-friendly material used for landscape wall construction. This is the least expensive option, but it’s typically only used for smaller walls around plants and sidewalks. The cost is between $10 and $20 (CAD 14 to CAD 27) per square foot. Maintenance costs are also low.

Concrete Landscape Blocks or Cinderblocks

Concrete blocks come in multiple forms and create strong and durable retaining walls. The cinder block wall cost ranges from $1 to $5 (CAD 1.37 to CAD 6.86) per block. Some home improvement places offer discounted prices for pallets. The cost of labor involved in laying cinderblocks typically adds $5 to $10 (CAD 6.86 to CAD 14) per block.

Poured Concrete

If you want a modern, industrial-strength retaining wall, poured concrete is the best option. Expect to pay between $20 and $45 (CAD 27 to CAD 61) per square foot for this type of gravity wall. A contractor builds a wooden form and then pours the wet concrete inside. Once the concrete cures, the form is removed.

Bricks

The average cost to build a brick wall is $15 to $75 (CAD 21 to CAD 103) per square foot. They are normally designed for walls that are a few feet tall.

Natural Stone

Natural stone works well for shorter walls or in smaller spaces. The average cost is between $20 and $95 (CAD 27 to CAD 130) per square foot. Stone retaining walls add curb appeal and are often used to section off flower beds and other areas in a landscape.

Steel

Steel is the most durable material used for retaining walls. Corrugated steal offers an industrial look that’s ideal for commercial spaces. The average cost is between $40 and $150 (CAD 55 to CAD 206) per square foot.

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Retaining Wall Installation Cost Factors

The cost to install a retaining wall involves much more than just the materials. The following are other things to consider when estimating hardscape costs.

Location

The site location can affect the overall cost. If your contractor has to rent equipment to move materials to the back of your property, you’ll have to pay a transport fee and additional labor costs. For example, a compact track loader costs between $250 and $700 (CAD 343 to CAD 960) daily, while a skid steer costs between $200 and $450 daily (CAD 274 to CAD 616).

Site Conditions

Preparation is usually required before the installation of a retaining wall can begin. The average cost of excavation is between $2.50 and $15 (CAD 3.43 to CAD 21). If your yard requires drainage, a shallow yard drain costs around $1,000 to $4,000 (CAD 1,372 to 5,488). Finally, the cost to grade or level an average-sized yard or lot is between $1,000 and $5,000 (CAD 1,372 to CAD 6,861).

Height and Length (Square Footage)

Materials are sold by the square foot or linear foot, so the exact cost of a retaining wall depends on the height and width needed. The larger the walls, the more expensive it will be.

Building Permits

Permit costs vary depending on location and the size of the wall. Typical costs range from $50 to $450 (CAD 69 to CAD 617).

Planning Costs

If your retaining wall is larger than 3 or 4 feet high, you’ll likely need a structural engineer to ensure the construction is safe and completed to industry standards. The average cost of a professional engineer is $500 to $2,000 (CAD 686 to CAD 2,744) or more.

Labor Costs

Labor is another cost that varies depending on where you live. Contractors generally charge between $50 and $150 (CAD 66 to CAD 206) an hour, which creates a markup of around 10% to 20%.

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