Rehab Cost Calculator Formula

Understand the math behind the rehab cost calculator. Each variable explained with a worked example.

Use the Rehab Cost Calculator

Formulas Used

Total Rehab Budget

total_cost = total_rehab

Base Cost (before contingency)

base_cost = base_total

Contingency Reserve

contingency_amt = contingency

Cost Per Square Foot

cost_per_sqft = square_footage > 0 ? total_rehab / square_footage : 0

Kitchen as % of Total

kitchen_pct = base_total > 0 ? kitchen / base_total * 100 : 0

Variables

VariableDescriptionDefault
kitchenKitchen Renovation(USD)15000
bathroomsBathroom Renovation(s)(USD)10000
flooringFlooring(USD)5000
paintingInterior/Exterior Painting(USD)4000
roofRoof Repair/Replacement(USD)0
hvacHVAC System(USD)0
plumbingPlumbing Repairs(USD)2000
electricalElectrical Work(USD)1500
landscapingLandscaping / Exterior(USD)2500
otherOther Costs (permits, dumpsters, etc.)(USD)3000
contingency_pctContingency Buffer(%)15
square_footageProperty Square Footage(sqft)1500
base_totalDerived value= kitchen + bathrooms + flooring + painting + roof + hvac + plumbing + electrical + landscaping + othercalculated
contingencyDerived value= base_total * contingency_pct / 100calculated
total_rehabDerived value= base_total + contingencycalculated

How It Works

Estimating Rehab Costs

Accurate rehab estimates are critical for house flipping, BRRRR investing, and renovation projects. Underestimating costs is the most common reason flips lose money.

Major Cost Categories

  • Kitchen: Typically the most expensive room ($10,000-$40,000)
  • Bathrooms: $5,000-$20,000 per bathroom
  • Flooring: $3-$12 per square foot installed
  • Paint: $2-$5 per square foot (interior and exterior)
  • Roof: $5,000-$15,000 for full replacement
  • HVAC: $3,000-$8,000 for new system

    • Budgeting Tips

  • Always include a 10-20% contingency for surprises
  • Get at least 3 contractor bids for large jobs
  • Permits can add 10-15% to specific trade costs
  • Factor in dumpster rental, storage, and staging

    • Worked Example

    A 1,500 sqft home needing kitchen ($15K), bathrooms ($10K), flooring ($5K), paint ($4K), plumbing ($2K), electrical ($1.5K), landscaping ($2.5K), other ($3K). 15% contingency.

    kitchen = 15000bathrooms = 10000flooring = 5000painting = 4000roof = 0hvac = 0plumbing = 2000electrical = 1500landscaping = 2500other = 3000contingency_pct = 15square_footage = 1500
    1. 01Kitchen: $15,000
    2. 02Bathrooms: $10,000
    3. 03Flooring: $5,000
    4. 04Painting: $4,000
    5. 05Plumbing: $2,000
    6. 06Electrical: $1,500
    7. 07Landscaping: $2,500
    8. 08Other: $3,000
    9. 09Base total: $43,000
    10. 10Contingency (15%): $43,000 x 15% = $6,450
    11. 11Total rehab budget: $43,000 + $6,450 = $49,450
    12. 12Cost per sqft: $49,450 / 1,500 = $32.97/sqft

    Frequently Asked Questions

    What does a full gut rehab cost?

    A full gut rehab typically costs $60-$150 per square foot depending on market and finishes. A 1,500 sqft home might cost $90,000-$225,000. This includes stripping to studs and replacing all finishes, systems, and sometimes structural elements.

    Should I use the 15% contingency on every project?

    For properties you have not thoroughly inspected, use 15-20%. For properties where you have done a detailed scope of work with contractor input, 10% may suffice. Never go below 10% because unexpected issues are inevitable.

    How do I reduce rehab costs?

    Buy materials in bulk, use mid-grade finishes in standard areas, do cosmetic work yourself (painting, landscaping), negotiate volume discounts with contractors, and focus renovations on highest-ROI areas (kitchen, bathrooms, curb appeal).

    Ready to run the numbers?

    Open Rehab Cost Calculator