How to estimate the cost to build a house
Building cost is usually estimated per square foot, then land, site work, permits and a contingency are added. Cost per square foot varies widely with region and finish level.
The formula
Total cost = square feet × cost per square foot + land + site work + permits + contingency
Worked example
A 2,000 square foot home at $200 per square foot costs $400,000 to build, before land and site work.
How to use this calculator
Enter the square footage of the home and a cost per square foot, then add what you expect to pay for land and site work. The cost to build a house calculator multiplies the first two and adds the rest, then shows a breakdown so you can see which part is largest. If you have a builder’s quote, use its cost per square foot. If not, try a low and a high figure to see a range.
What the result means
The result is a planning estimate, not a bid. As a rough guide, standard new-home construction runs about $150 to $250 per square foot, and the figure is highly regional. Custom designs and high-end finishes can cost more.
Keep two numbers apart when you read the result. The construction cost is square feet times cost per square foot. The total project cost adds land, site work, permits and contingency. A builder’s price per square foot normally describes the first number only.
More examples
A full project budget
Take the 2,000 square foot home at $200 per square foot and add example figures for the other items.
| Item | Cost |
|---|---|
| Construction (2,000 × $200) | $400,000 |
| Land | $80,000 |
| Site work | $30,000 |
| Permits | $10,000 |
| Contingency (10% of construction) | $40,000 |
| Total | $560,000 |
Spread over 2,000 square feet, the all-in cost is $280 per square foot, well above the $200 construction figure.
Construction cost by size and price
| Home size | At $150 per sq ft | At $200 per sq ft | At $250 per sq ft |
|---|---|---|---|
| 1,500 sq ft | $225,000 | $300,000 | $375,000 |
| 2,000 sq ft | $300,000 | $400,000 | $500,000 |
| 2,500 sq ft | $375,000 | $500,000 | $625,000 |
These figures cover construction only.
What changes the result
- Size. Every extra square foot is multiplied by the full cost per square foot. Adding 250 square feet at $200 adds $50,000.
- Finish level. Cabinets, flooring, windows and fixtures move the cost per square foot up or down.
- Design. A simple shape costs less to build than one with many corners and roof lines.
- The site. A sloped or wooded lot, or one without utilities, raises site work.
- Land. Land price depends on location and can be a large share of the total.
Common mistakes
- Budgeting for construction only and leaving out land, site work and permits.
- Using a cost per square foot from another region or from an older project.
- Skipping the contingency. Prices and plans change between the estimate and the final invoice.
- Comparing quotes that measure square footage differently. Ask each builder what the figure includes, such as garages, porches and basements.
- Forgetting costs outside the build, such as landscaping, appliances and interest on a construction loan.
Related calculators
Draw the layout in the floor plan creator and total the rooms with the square footage calculator to get the size to enter here. If you are weighing a rebuild against updating a home you own, compare the result with the renovation cost calculator. The cost of homeownership calculator covers what the finished home costs to run each year. Newly Property is not a lender or a builder, so ask your lender how much of the project it will finance.
Frequently asked questions
What drives the cost per square foot?
Local labor rates, the complexity of the design, and the level of finishes.
What is site work?
Clearing, grading, the driveway, and utility connections, or a well and septic system.
How much contingency should I allow?
10% to 20%.
How much does it cost to build a 2,000 square foot house?
At roughly $150 to $250 per square foot, construction comes to about $300,000 to $500,000 before land and site work. Costs in your area may fall outside that range.
Does cost per square foot include the land?
No. In this formula cost per square foot covers construction, and land is added separately.
Is it cheaper to build or buy a house?
It depends on local land prices, building costs and what existing homes sell for. Estimate the total project cost here and compare it with prices for similar homes nearby.
How can I get a firmer number than this estimate?
Ask builders for written bids based on your plans and your lot. A bid reflects local prices and the specific materials you choose.