How We Calculate
Our calculator uses a component-based cost model. Instead of giving you a single vague range, we calculate each part of the project separately and show you the full breakdown.
The formula
Total Cost = Base Build + Site Prep + Connections + Approvals + Contingency
Base Build = Size (sqm) × $/sqm rate × Build Type Factor × Finish Quality Factor
1. Base build cost
The base build cost starts with a per-square-metre rate that varies by size. Smaller granny flats have a higher $/sqm because fixed costs (kitchen, bathroom) are spread over less area. We then adjust for build type (kit, prefab, or site-built) and finish quality (budget through luxury).
| Size | $/sqm |
|---|---|
| Studio (20-30 sqm) | $4,500 |
| 1-bed (31-45 sqm) | $3,500 |
| 2-bed (46-60 sqm) | $2,900 |
| Large 2-bed (61-80 sqm) | $2,600 |
| 3-bed (81-100 sqm) | $2,400 |
2. Site preparation
Starts at $20,000 for a flat site with standard access. Slope adds $7,500 (gentle) to $30,000 (steep). Restricted access or crane requirements add $4,000–$8,000.
3. Utility connections
Covers electricity, water, sewer, stormwater, NBN, and switchboard upgrade. Base cost is $18,000 (within 20m of existing services), adjusted by a state-specific factor based on published builder connection packages.
4. Design and approvals
Includes $8,000 base design and engineering fees, plus state-specific approval costs. NSW has the highest approval costs due to Section 7.11/7.12 council contributions ($4,000–$12,000). Victoria and WA are the most streamlined.
5. Contingency (10%)
We add 10% to the subtotal. Construction projects routinely encounter unexpected costs — soil conditions, council requirements, material delays. The industry standard recommendation is 10–15%.
Cost range
We show you a range (-10% to +15% from our estimate) to reflect the inherent variability in construction costs. The midpoint is our best estimate based on available data.
Want to see the data behind these numbers? View our data sources →