How we estimate home project costs
Every number on HomeJobCost comes from one calculation model. Here is exactly how it works, what it includes, and where it can be wrong.
1. Each project is a list of line items
A kitchen remodel, for example, is split into cabinets, countertops, flooring, plumbing, electrical, demolition, and drywall. Each line item has a material cost per unit (per sq ft, linear ft, window, ton, or gallon) and the labor hours it takes per unit at a typical hourly rate for that trade. You can switch line items on or off in the calculator to match your project.
2. Size and finish level
Material and labor are multiplied by your project size. The finish level (budget, mid-range, or high-end) scales material costs fully and labor by half as much, since better finishes usually take more skilled labor too, but not proportionally more.
3. Your city
Each metro has four adjustments: a labor-rate index, a material-price index, the local sales tax rate, and a permit-cost index for how expensive and slow local permitting tends to be. Sales tax is applied to materials and equipment, not labor.
| Metro | Labor index | Materials index | Sales tax | Permit index |
|---|---|---|---|---|
| the San Francisco Bay Area, CA | 155% | 128% | 8.625% | 1.45× |
| New York City, NY | 148% | 125% | 8.875% | 1.50× |
| Boston, MA | 138% | 120% | 6.25% | 1.35× |
| Los Angeles, CA | 134% | 118% | 9.5% | 1.35× |
| Seattle, WA | 132% | 116% | 10.35% | 1.25× |
| Chicago, IL | 126% | 110% | 10.25% | 1.30× |
| Philadelphia, PA | 122% | 109% | 8% | 1.25× |
| Minneapolis–St. Paul, MN | 119% | 107% | 8.03% | 1.15× |
| Denver, CO | 118% | 108% | 8.81% | 1.15× |
| Miami, FL | 114% | 112% | 7% | 1.25× |
| Austin, TX | 112% | 104% | 8.25% | 1.15× |
| Dallas–Fort Worth, TX | 108% | 102% | 8.25% | 1.10× |
| Houston, TX | 106% | 101% | 8.25% | 1.05× |
| Phoenix, AZ | 105% | 103% | 8.6% | 1.10× |
| Atlanta, GA | 104% | 102% | 8.9% | 1.10× |
| National Baseline (US Average) | 100% | 100% | 6.5% | 1.00× |
| Raleigh–Durham, NC | 99% | 100% | 7.25% | 1.05× |
| San Antonio, TX | 98% | 100% | 8.25% | 1.05× |
100% = national average. Indexes are relative estimates, not official statistics.
4. Permits, disposal, and contingency
Projects that normally need a permit get a permit allowance that grows with project size and the metro's permit index. Interior painting, flooring, and gutters get none. Projects that create debris get a disposal and dumpster allowance. A contingency (10% by default, adjustable from 0–40%) is added on top for surprises like rot, outdated wiring, or out-of-level floors.
5. From one number to a range
The calculation produces a mid-point. We show a range from about 14% below to 18% above it, because real quotes vary with contractor overhead, site access, and exact products, and overruns are more common than savings.
6. Calibration
Unit costs are calibrated so the default results for each project land inside the national cost ranges that are widely published for 2026. Every range in our tables, city pages, and FAQs is computed from the same model, so the text on a page always matches what the calculator returns.
What the estimates don't know
- The condition of your home: hidden rot, asbestos, lead paint, or wiring that must be brought up to code.
- Access problems: steep roofs, tight lots, upper-floor bathrooms, or long carries.
- Exact products: a specific brand of cabinet or tile can move the price well outside the range.
- Market timing: busy seasons, storms, and material shortages push prices up quickly.
Use the estimate to set a budget and to sanity-check quotes, then get at least three written quotes from licensed, insured contractors. When a quote comes in, run it through the Quote Checker.