Estimate Cost to Build a House – Accurate Pricing Tools for Smarter Planning
Use Our Cost Estimator to Calculate Building Expenses Based on Size, Location, and Features
Search Plans
Contact Us
New House Construction Cost Breakdown | Material, Labor & Profit Calculator
How we calculate your 2025 build cost
We start with national, per‑square‑foot baselines for materials and labor that reflect typical single‑family construction. Then we update them to today using official government indexes: the BLS Producer Price Index for home‑building materials and the BLS Employment Cost Index for construction wages. Finally, we adjust for where you’re building with the Bureau of Economic Analysis Regional Price Parities—an official measure of how price levels differ by state. The result is a transparent, evidence‑based estimate that moves with the market and with your location. Sources are linked above and refreshed as agencies publish updates.
| Component | What we use | Latest reading | Baseline used in calculator | 2025 factor | Why it matters |
|---|---|---|---|---|---|
| Materials | BLS Producer Price Index (PPI) – Inputs to Residential Construction, Goods (Series WPUIP2311001) | 323.818 (Aug 2025) | 312.378 (Jan 2024) | ×1.0366 | Tracks nationwide price changes for lumber, concrete, metals and other goods used to build homes. (FRED) |
| Construction Wages | BLS Employment Cost Index (ECI) – Wages & Salaries, Construction (Series CIU2022300000000I) | 168.655 (Q2 2025) | 160.500 (Q4 2023) | ×1.0508 | Reflects the latest wage trends paid to construction workers, which drive the labor portion of a build. (FRED) |
| Location | BEA Regional Price Parities (RPP) – State price-level index (2023) | State-by-state (U.S.=100) | State-by-state (U.S.=100) | RPP/100 | Adjusts totals for local cost levels so a plan priced in CA (RPP~112.6) differs from MS (RPP~87.3). (Bureau of Economic Analysis) |
| Markup | Overhead & Profit | 7% & 6% (default) | Adjustable | — | Visible in the summary so you see how professional bids are typically structured. |
SEARCH
Find your dream house from over 15,000 plans!
Blog
For more information, read our blog.
CONTACT
Get in touch to discuss your options!