Construction Budget Calculator

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How to Calculate Construction Costs

To calculate your construction budget, use the following formula:

\text{Total Budget} = (\text{Labor Cost} + \text{Material Cost} + \text{Equipment Cost} + \text{Miscellaneous Costs}) + \left(\frac{\text{Overhead Percentage}}{100} \times \text{Subtotal}\right)
  1. Add up labor, material, equipment, and miscellaneous costs to find the subtotal.
  2. Calculate overhead by applying the overhead percentage to the subtotal.
  3. Sum the subtotal and overhead to get the total budget.

Example

You’re managing a construction project for a new office building. The costs are:

  • Labor: $50,000
  • Materials: $120,000
  • Equipment: $20,000
  • Miscellaneous Costs: $5,000
  • Overhead: 12%

Calculation:

  1. Subtotal: $50,000 + $120,000 + $20,000 + $5,000 = $195,000
  2. Overhead: \frac{12}{100} \times 195,000 = 23,400
  3. Total Budget: $195,000 + $23,400 = $218,400

With this tool, you can make accurate financial decisions and keep your project on track.