Q&A /

# New Home Cost Calculator

A new home cost calculator works well to determine the price of a standard home like this one. You just need to know the accurate costs of several components like foundation, rough lumber, drywall, etc.  (C) Copyright 2023 Tim Carter

"The first thing you need to get an accurate price for your new home is a good set of plans and specifications. You need these to be able to get individual cost estimates for the different aspects of your home."

## A New Home Cost Calculator Works

You want to build a new home, but you have no idea what it's going to cost. It's important that you get the number right so you don't run out of money or you borrow enough.

Here are your options to calculate the cost of a new home:

• get accurate quotes for all labor and material
• visit identical new homes on the market and deduct land and realtor cost
• use a magic calculator that allows you to enter one number and it figures out the rest
• throw a dart at a dartboard filled with possible numbers
• guess wildly

Two of the methods are foolish, one's very hard, one's risky, and one will generate a fairly accurate price.

But which is which? The third method is the fastest and can produce an accurate total cost estimate.

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### Is a New Home Cost the Sum Of Its Parts?

Each major part of building a home represents a small part of the total cost. This is basic grade-school mathematics.

New cookie-cutter houses are the easiest ones to calculate. The houses are often similar in size and have the same components. It's important to realize many use the exact same subcontractors who charge the same per house, for the most part, to do what they do.

You can determine what each part of your home costs after you move in once you know the final bill. For example, let's say your new home's total cost, not counting the land, is \$485,000. You know the footings and foundation cost \$45,000. That means this part of your home was 9.2 percent of the total cost.

The issue is you want to know the total price while you're in the dream phase and it's not easy to get all the individual bids for every aspect of the house.

### What is the First Thing I Need to for a New Home Cost Calculator?

The first thing you need to get an accurate price for your new home is a good set of plans and specifications. You need these to be able to get individual cost estimates for the different aspects of your home.

### Where Can I Get a New Home Cost Calculator?

I developed a new home cost calculator you can download right now. It could save you THOUSANDS of dollars. You just enter one number and the spreadsheet fills in all the other numbers. Here's a partial screenshot of what it looks like:

It works BEST if you get bids on the mundane aspects of your project like:

• electrical work
• roofing
• siding
• lumber package

I would then enter just one of the above numbers in the spreadsheet and allow it to calculate all the others including the total cost. Write down what the total is.

Then do the same process with the other three numbers. Add up the four total-cost numbers and divide the sum by four.

This should give you a fairly accurate total cost number.

### What Causes The Cost Number to Be Inaccurate?

Specialty items like extravagant kitchen cabinets, countertops, exquisite lighting fixtures, or anything NOT normal will yield inaccurate total cost numbers. My cost calculator works best on cookie-cutter houses, but it will work well for custom homes if you use it as I say above.