Installing a shed is an excellent alternative that expands your living space and allows you to work or enjoy your favorite hobby outside of your home’s chaos. Understanding the cost of building a shed is the first step to planning your new structure. Here is our comprehensive guide to costs associated with building a shed.

Average Costs of the Most Common Size Sheds

The average cost to build a shed is $3000. Most householders will spend between $1000 and $9000. You can spend as little as $400 or as much as $20000, depending on the size and design of the shed. It is crucial to note that prices can vary depending on the cost of materials in your area. 

6×4 (24 sq. ft) $450
8×6 (48 sq. ft) $880
8×8 (64 sq. ft) $1260
8×10 (80 sq. ft) $1650
10×10 (100 sq. ft) $1940
10×12 (120 sq. ft) $2260
12×12 (144 sq. ft) $2680
10×16 (160 sq. ft) $3040
12×16 (192 sq. ft) $3620
10×20 (200 sq. ft) $4140
12×20 (240 sq. ft) $4780
16×24 (384 sq. ft) $5200

Factors Affecting the Cost of Building a Shed

Several factors directly affect the overall cost of building a shed. Here are nine key considerations to take into account:

  • Size of the shed
  • Types of building materials 
  • Labor costs
  • Land preparation
  • Type of foundation
  • Permit costs
  • Utilities
  • Shed style
  • Custom design or prefab kit? 

It is important to note that one or more of these costs may not be associated with your structure, depending on your needs.

What Size Shed Do You Need?

The size of the shed you build will depend on its intended use, available space on your property, budget, and local regulations. Most people spend between $1,000 and $9,000 on their sheds. The cost of your shed may be higher or lower. But, this gives you an idea of what to expect.

Additional Building Materials

Apart from the exterior, you will also need materials for the wood frame, roof, foundation, and interior walls. The type of material you choose will significantly impact the total cost of the shed.


If the building is metal and you do not plan on finishing the structure out on the inside, the metal can serve as the exterior and the interior wall. Otherwise, you will need interior walls, which will most likely be made of construction lumber, typically 2x4s.

You can expect to pay between $4.67 and $7.32 per square foot to install an interior wall of the shed.


The most common material for shed roofs by far is asphalt shingles. Asphalt shingles are affordable, easy to install, and widely available in various colors and styles. Metal roofing is an increasing popular choice for sheds, but it typically requires professional installation. 

The average cost of a roof ranges from $1.16 to $625 per square foot, including labor. You may be able to cut costs by safely installing the roof yourself.


When it comes to the shed foundation, you have several choices, including: 

  • Concrete blocks
  • Skids
  • Timber frame
  • Concrete piers
  • Concrete slab
  • Pole barn

The average cost of a shed foundation ranges from $4 to $16 a square foot. The cost will depend on your chosen material and whether you hire someone or install the foundation yourself. 

Building Permit Costs

Whether or not you need a shed permit depends on municipality regulations. Typically, sheds over a specific size need to be permitted, but it’s important to first check with your town’s building department before starting construction.

Cost: According to national averages, the price of a permit for small projects ranges from $50 – $300. The cost of a permit for large projects ranges from $500 – $2,000. In most cases, sheds are considered small projects. 

How Much Will Labor Cost?

How much does it cost to have a shed built? You have three choices when it comes to labor. You can either do all of the work, some of the labor, or hire the entire build-out to a professional. This is one area you can save a wad of money. If you choose to construct the shed on your own or with the help of friends and family, labor will not cost you anything but your time. If you decide to take the project on yourself, you are responsible for building the shed and ensuring all the design components are safe and the required inspections are conducted. It is a serious undertaking, but the upside is that you can ensure the shed is built exactly how you want, and you can go at your own pace.

However, you may not have the time or inclination to tackle the project yourself. In this case, you will need to hire a professional contractor. The contractor will be responsible for all safety aspects of the design and ordering the appropriate inspections. If the structure does not pass an inspection, it will be up to the contractor to fix the issues. If you choose to hire someone, make sure they are reputable. Ask for proof of licensing and insurance. Look online for reviews or ask for references of someone who has used their services.

The average cost for labor to build a shed ranges from $50 at the low end to $100 at the high end. The going rate in your area for construction labor may vary.

Which Approach is Best for You to Take When Building Your Shed?

You can approach your shed build in a couple of different ways. 

Prefab Shed Kit

A prefab shed kit includes all the materials needed to build the structure, including detailed instructions. The pros are that you have everything you need without going out and sourcing materials yourself. However, a prefab kit is not a slam dunk winner. There are a few cons. First, the cost of a prefab kit can be higher than if you built the same shed from a set of plans and sourced the materials yourself. You pay for convenience. If you choose to hire a professional to build the shed, the cost increases even more. Secondly, if you make a mistake and ruin a piece of material, you will have to purchase additional materials. Lastly, there is absolutely no room for customization during the build. It is also crucial to remember that most kits do not come with a foundation, which you will have to purchase and either install it yourself or pay a professional.

The average range of a prefab shed kit is $200 to $30,000.

Shed Plans

Your second option is to choose a free shed plan, which comes with easy-to-follow building plans, a materials list, and illustrations for each step. If you enjoy projects and are skilled with construction tools, you can easily follow the plans to build your own shed. Of course, you can also purchase the materials and hire a professional to do the labor. For under $20, you can purchase premium shed plans that come with absolutely everything you need to build the shed of your dreams, including:

  • Illustrations for each step
  • Step-by-step instructions
  • Full materials and cuttings list
  • Additional illustrations & blueprints
  • List of tools needed
  • Fastening elements list
  • Technical support

Purchasing shed plans or using a free version makes it easy to build your own shed. All you must do is follow the step-by-step directions. Furthermore, you can save money by purchasing materials yourself and shopping around for the best prices. If you wish to make customizations along the way, you can also do that.

How Much Will Land Preparation Cost?

Chances are the shed site will need preparation of some sort before you build the foundation. It may be as simple as removing grass and applying a weed killer. On the other hand, you may need to clear shrubbery, trees, rocks, debris, etc. If the site isn’t level, it will need to be graded as well. The cost can vary wildly depending on how large the site is, how much prep the site needs, and whether you will do the work yourself or hire it out. Choosing the shed site will cut down on site prep costs. 

Cost: You can expect to pay anywhere from a couple of hundred dollars to several thousands of dollars to ensure the site is prepped correctly. 

How Much Will It Cost to Install Utilities?

Utilities are not a necessity when building your shed. It is an optional cost. However, if you plan to have electricity or plumbing, it is easier and cheaper to install while building versus after it is already built. The size of your shed and the distance between electrical and plumbing are the largest factors in the cost of installing utilities. 

Costs: Electrical wiring costs typically range from $500 to $2,000 but can be higher or lower depending on your unique situation. Depending on the size of your shed, plumbing costs can range from a few hundred dollars to thousands of dollars. 

Will You Need to Conduct Inspections?

Contact your municipality’s Building and Planning & Zoning Departments to determine if inspections are required for your build. Typically sheds under a specific size do not need inspections. However, if you plan to run plumbing and electrical to your shed, you will most likely need one or more inspections, regardless of how small the structure is. Inspections are designed to ensure that your shed is built to code and safe for people to occupy.

The average cost of an inspection ranges from $200 to $500. The exact costs will depend on the type of inspection you need and the area you live in.