Cost to Finish a Basement: What to Realistically Expect in 2026

We finished our basement recently, transforming a concrete storage pit into a bathroom, office, home gym, bedroom, and common area.

Then we roughed in a great room and kitchenette because we ran out of money and energy. In that order.

Most basement projects I’ve seen land somewhere between $15,000 and $75,000.

The national average sits at $32,000.

But plenty of projects cost less or way more.

I’ll walk you through everything that may impact the cost and ROI of your basement remodel.

^{All costs in this article are sourced from Angi.}

What You’ll Pay by Square Footage

When it comes to square foot pricing, you’re looking at $7 to $23 per square foot.

I know, that’s a wide range.

Want bathrooms, custom built-ins, or nicer materials? Your cost per square foot climbs fast.

Here’s what different sizes actually cost.

• A 500-square-foot space? Plan on $3,500 to $11,500.
• Got 750 square feet? That’ll run $5,250 to $17,250.
• A 1,000-square-foot basement costs $7,000 to $23,000 to finish.
• If you’re working with 1,500 square feet, you’re looking at $10,500 to $34,500.

Simple layouts with standard materials keep you near the lower estimates.

Start adding bathrooms, custom built-ins, or premium finishes? Your costs will explode.

Big cities cost more, too. Labor and materials in major metros can run 20% to 30% above what you’d pay in smaller markets.

Your basement’s current condition and your material choices can swing the price just as much as square footage. 

Location plays a massive role too; what costs $21,000 to $32,000 in Indianapolis might run you $31,000 to $60,000 in New York City.

Square Footage	Estimated Cost Range
500 sq ft	$3,500 to $11,500
750 sq ft	$5,250 to $17,250
1,000 sq ft	$7,000 to $23,000
1,500 sq ft	$10,500 to $34,500

Where Your Money Goes

Framing runs $7 to $16 per square foot.

Drywall? That’s $1.50 to $3 per square foot.

Carpet and laminate flooring cost $3 to $11 per square foot. Hardwood’s pricier, up to $22 per square foot.

Electrical work adds up based on what you need. You’ll pay $100 to $450 per outlet, $60 to $300 per switch, and $150 to $900 per light fixture.

Adding a bathroom? Plumbing fixtures vary: toilets cost $225 to $530, sinks run $215 to $660, and showers range from $1,100 to $8,500. HVAC extensions typically fall between $2,000 and $3,000.

Permits and inspections add between $1,200 and $2,000, depending on your area. 

And here’s the kicker: professional labor makes up about 20% of your total budget. We saved some money by handling the demo and prep ourselves. The contractors showed up to a clean, ready space, which they appreciated.

Though I’ll be honest, demo day nearly killed me. I’m not 25 anymore.

Item	Cost Range (per unit/sq ft)
National Average	$32,000
Overall Cost Range	$15,000 to $75,000
Framing	$7 to $16 per sq ft
Drywall	$1.50 to $3 per sq ft
Carpet & Laminate Flooring	$3 to $11 per sq ft
Hardwood Flooring	Up to $22 per sq ft
Electrical Outlet	$100 to $450 per outlet
Electrical Switch	$60 to $300 per switch
Light Fixture	$150 to $900 per fixture
HVAC Extensions	$2,000 to $3,000
Permits & Inspections	$1,200 to $2,000
Toilet	$225 to $530
Sink	$215 to $660
Shower	$1,000 to $8,500
Professional Labor	~20% of total budget

What Drives Your Costs Up or Down

Here are the main cost factors in basement finishing.

Starting Conditions

Your basement’s current state matters more than almost anything else. Dry basements with decent ceiling height cost way less than those needing foundation work or major moisture fixes.

Ceiling height can actually kill your project before it starts. Building codes require 7 feet minimum for living space. Too low? You’ll pay serious money to lower the floor or adjust the foundation.

We had 7 feet, 2 inches in some areas with lower-hanging ductwork. Just enough to avoid that nightmare.

Scenario	Cost Impact on Renovation	Estimated Cost to Fix
Sufficient Height (7+ ft)	No Impact. You can proceed with standard finishing.	No additional cost.
Low Height (Under 7 ft)	Requires major structural work to make the space legal and habitable.	$10,000 to $90,000 (To raise ceiling)

Existing utilities also determine your layout flexibility. Moving plumbing or electrical lines gets expensive fast. Stick with what’s already there if you can.

Your Design Decisions

Material choices create the biggest cost swings. Laminate flooring costs $3 to $11 per square foot. Hardwood? You’re paying up to $22 per square foot.

We went with luxury vinyl plank that looks like real wood and saved about $3,000 versus actual hardwood.

Material Type	Low-End Material Cost (per sq ft)	Mid-Range Material Cost (per sq ft)	High-End Material Cost (per sq ft)
Carpet	$1.00 to $3.00	$3.00 to $5.50	$5.50 to $12.00+
Laminate Flooring	$2.50 to $3.00	$3.00 to $4.00	$4.00 to $11.00+
Luxury Vinyl Plank (LVP)	$1.75 to $3.50	$3.50 to $5.00	$5.00 to $7.00+
Epoxy Coating	$1.15 to $3.60	$3.60 to $7.00	$7.00 to $12.00+
Ceramic/Porcelain Tile	$1.00 to $5.00	$5.00 to $10.00	$10.00 to $40.00+
Engineered Hardwood	$4.00 to $6.00	$6.00 to $10.00	$10.00 to $22.00+
Rubber Flooring	$2.00 to $4.00	$4.00 to $7.00	$7.00 to $10.00+

More rooms mean more walls. Each partition adds framing, drywall, electrical, and doors. Our five rooms required constant budget juggling.

Component	Typical Installed Cost Range (Per Linear Foot)
Wall Framing (Basic Studs)	$18 to $24
Framing + Drywall (Finished Wall)	$32 to $56
Drywall Only (Installed & Finished)	$1.50 to $3.50
Painting	$4.70 to $9.50
Add Basic Interior Door	$99 to $398

We almost merged the office and gym into one space, but my wife shut that idea down fast.

Custom features get expensive in a hurry. We kept our first phase simple and roughed in the kitchenette for later. Maybe next year. Maybe never. We’ll see.

Breaking Down Costs by Project Type

The finish level you choose for your basement is a top cost factor.

Basic Finish

A simple layout with minimal partitions keeps costs down. That includes framing, drywall, basic flooring, standard electrical, and simple lighting. The space becomes livable. One large room or minimal partitions. Paint, carpet, or vinyl plank, basic trim.

Nothing fancy, but perfect for family rooms, gyms, or play areas.

Mid-Range Build

Mid-range projects add multiple rooms, better materials, and potentially a bathroom. Our project fell into this category; we barely stayed under budget.

When plumbing is already nearby, bathrooms become feasible. Recessed lighting, built-ins, and quality flooring make everything feel genuinely finished.

High-End Renovation

Luxury basements hit $100,000 or more. You’re talking premium materials, custom millwork, high-end appliances, and lighting fixtures that match your main floor quality.

Full bathrooms get tile showers, custom cabinets, and designer fixtures.

Gourmet kitchenettes show up in some. Wine cellars with temperature control in others. I’ve seen radiant floor heating, custom bars with built-in refrigeration, and elaborate entertainment systems. Some people go all out. Not us, but some people.

Should You DIY?

DIY work can save money on the 20% of your budget that goes to general contractor fees. Some tasks make perfect sense to tackle yourself. Demo, insulation, painting, trim work? None of these requires special skills.

You probably own the tools already.

Electrical, plumbing, HVAC? Hire licensed professionals for those. No exceptions. Permits require licensed work in most places.

Mistakes cost way more to fix than hiring pros upfront. Drywall isn’t easy either. My first attempt looked terrible. I had to redo an entire wall.

The hybrid approach works best for most people. Handle what you can. Hire pros for the rest. We split it that way, and I’d make the same choice again.

Paying for Your Project

Unless you pay with cash savings, here are home improvement financing options you can use to pay for your basement project.

Home Equity Options

Borrowing against your home equity offers lower rates than most financing options. That’s why it’s popular for major renovations.

Home equity loans give you a lump sum with fixed payments. HELOCs work like credit cards. Draw what you need, pay interest on what you use.

Your home becomes collateral with both options, so make sure the payments fit comfortably in your budget. The Consumer Financial Protection Bureau says to compare all the terms and costs before you borrow against your home’s value.

Personal Loans

Personal loans work for smaller projects or if you lack home equity. Borrow $5,000 to $100,000 based on your credit.

Faster approval than home equity products. Your home isn’t at risk. You’ll pay higher interest rates over the loan term, though.

Other Ways to Finance

Cash-out refinancing replaces your current mortgage with a bigger one. Makes sense if rates are competitive with what you’re paying now. Not as smart when mortgage rates are high.

Contractor financing programs exist, but often carry higher rates. Credit cards work for small expenses. High interest makes them risky for larger balances.

What You Get Back When You Sell: Finished Basement ROI

You can recoup 70% to 75% of your costs when you sell. A $50,000 basement project bumps your home value by about $32,000 to $35,000. Not a great investment on paper.

But here’s the thing. Returns vary by location. Markets where basements are common see buyers expect them. Warmer climates with rare basements see lower returns.

We didn’t do it for resale value. We did it because we needed the space. The value add is just a bonus.

Smart Ways to Save Money on Basement Renos

Get three to five contractor quotes. Bids can vary 20% to 30% easily. We got quotes from $38,000 all the way up to $62,000 for the same work. Don’t just take the first bid you get.

Late fall through early spring brings better rates. Contractors have lighter schedules and are more willing to negotiate.

Do your own prep work. Clear the space, remove old materials, and clean thoroughly. Contractors bill by the hour, and you can do this stuff yourself. Pick budget materials that look expensive. Luxury vinyl plank mimics hardwood for way less. Prefab shower units beat custom tile on price by thousands.

Phase the project if money’s tight. Finish main spaces first. Leave future areas roughed in. We used that approach and cut our immediate costs significantly.

Your Next Steps

Your basement project will likely fall somewhere in the $15,000 to $75,000 range. Size, finishes, and complexity drive your actual costs. Get multiple contractor quotes to understand real pricing in your area.

Think carefully about financing. Match your loan type to your equity and credit situation. The right choice keeps your project comfortable instead of stressful. The wrong choice can make you regret the whole thing.

Finished basements pay off in lifestyle improvements now and resale value later. Ours completely changed how we live in our house. I’m saving about $600 annually on gym memberships alone.

Plan carefully, get solid quotes, and the extra space pays for itself in quality of life.