Enter the cost of land purchase, materials, construction labor, utilities installation, and other expenses, as well as the contingency percentage into the calculator to determine the total self-build cost.
Self Build Cost Formula
The following formula can be used to calculate the cost of a self-build project.
SBCC = (L + M + C + U + O) * (1 + P)
Variables:
- SBCC is the total self-build cost ($)
- L is the cost of land purchase ($)
- M is the cost of materials ($)
- C is the cost of construction labor ($)
- U is the cost of utilities installation ($)
- O is the cost of other expenses such as architect fees, permits, etc. ($)
- P is the contingency percentage (decimal) to cover unexpected costs
To calculate the total self-build cost, add the cost of land purchase, materials, construction labor, utilities installation, and other expenses. Multiply the sum by 1 plus the contingency percentage to account for unexpected costs.
What is a Self Build Cost?
A Self Build Cost refers to the total amount of money required to construct a building or a house by oneself. This includes the cost of purchasing land, materials, tools, and equipment, as well as the cost of labor if you hire professionals. It also includes costs related to planning, designing, and obtaining necessary permits and approvals. The self-build cost can vary greatly depending on the size, location, and complexity of the project.
How to Calculate Self Build Cost?
The following steps outline how to calculate the Self Build Cost using the given formula:
- First, determine the cost of land purchase ($), denoted as L.
- Next, determine the cost of materials ($), denoted as M.
- Next, determine the cost of construction labor ($), denoted as C.
- Next, determine the cost of utilities installation ($), denoted as U.
- Next, determine the cost of other expenses such as architect fees, permits, etc. ($), denoted as O.
- Next, determine the contingency percentage (decimal) to cover unexpected costs, denoted as P.
- Finally, calculate the Self Build Cost using the formula SBCC = (L + M + C + U + O) * (1 + P).
Example Problem:
Use the following variables as an example problem to test your knowledge:
cost of land purchase ($) = 100,000
cost of materials ($) = 50,000
cost of construction labor ($) = 80,000
cost of utilities installation ($) = 10,000
cost of other expenses such as architect fees, permits, etc. ($) = 20,000
contingency percentage (decimal) to cover unexpected costs = 0.1
