How Much Does It Cost to Finish a Basement in 2025?

This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.

Finishing your basement costs between $15,000 and $75,000, with an average cost of $32,000. Prices vary depending on your location, basement size, and desired finishes, ranging from as low as $2,800 up to $100,000. On average, expect to spend between $7 and $23 per square foot to finish your basement.

By finishing your basement, you're not only adding valuable living space but also potentially increasing your home's value. One of the most critical steps is waterproofing, which protects your investment and ensures a long-lasting result. Other important factors influencing the cost include framing, insulation, drywall installation, and flooring. Proper budgeting and hiring a professional will make sure your project is completed safely and up to code.

Basement Finishing Cost Factors

There are many factors that make up the cost of finishing a basement, such as square footage, installation tasks and systems, permits, labor, and more. Here is a breakdown of the cost factors that impact your final basement finishing price. 

Size

The cost of finishing a basement can range from $7 to $23 per square foot. Here is a breakdown of the costs for various basement sizes.

Labor

General contractor or professional basement remodeler fees usually account for about 20% of the total project cost and are included in the overall quote.

Permits

A building permit costs an average of about $1,200 to $2,000, depending on your home’s location, basement size, and the scope of the work. The permit cost usually includes inspection fees.

Any project involving electrical, plumbing, or turning the basement into a livable space requires permits. The plumbing must remain up to code for proper drainage and to effectively flush waste back into the sewer or septic system. Keeping your electrical work up to code is also important to prevent short circuits, blown breakers, and fires.

If you do not get the proper permits, you may receive a stop work order that halts your project in its tracks. This order also typically results in double the fees once you do apply for permits. Your city could even issue fines or orders to remove all the unpermitted work. If you have to file an insurance claim and can't produce permits, the insurance company may deny the claim. Finishing a basement without permits can also affect the home's resale value.

Cost by Finishing Task

Here’s a breakdown on some common basement finishing tasks:

Sealing and Waterproofing

Basement waterproofing costs an average of $4,450 for homes with leaky foundations. A sump pump installation costs about $575 and can protect your basement from floods.

Though it adds to the cost, waterproofing is essential. Basement water leakage can cause serious problems. Standing water leads to mold growth, posing health risks and attracting pests. Leaking water can also cause hairline cracks in your foundation and concrete blocks, which can develop into significant structural issues. Early repair and prevention are key to protecting your investment.

Cost to Frame a Basement

The price of framing a basement is about $1,800 on average, which does not include insulation or drywall. On its own, framing is about $7 to $16 per linear foot, but it is closer to $20 to $30 per linear foot with drywall. Insulation costs add $2,000 when using 3 1⁄2-inch batt and roll barriers.

Cost to Drywall a Basement

Installing drywall costs an average of $1,750, or about $2 per square foot. Finishing basement walls in a 400-square-foot space may run you $800, while 1,500 square feet is closer to $3,000. Contractors include labor in the total, along with the price of drywall panels, which are $12 to $20 each.

Cost to Build Basement Ceiling

A ceiling costs about $1,700 to build and drywall in the basement. Contractors often include the price of a basic drywall ceiling in the room framing and drywalling costs when doing the whole room at once.

Other designs may cost extra and are often necessary since pipes and ductwork hang lower than the joists. This makes a smooth ceiling impossible, but you still have a few options to choose from:

• Spray Painting: You can hire a pro for around $300 to $500. Many repurposed urban spaces mask pipes and ductwork by painting them and the ceiling the same color.

• Drop Ceiling: Drop ceilings cost $2 to $6 per square foot and cover the pipes, ductwork, and wiring. The most popular ones are acrylic panels that look like wood and other materials or have attractive patterns.

• Tongue and Groove: Tongue and groove wood paneling is $1 to $3 per square foot and is quick to install. The lightweight panels are easily cut to fit around exposed ductwork and more to give the space a modern look.

Basement Flooring Installation

The price of flooring for a basement ranges from $1,500 to $4,500. Expect to pay $3,000 for about 500 square feet of flooring. Hardwood costs up to $22 per square foot, and laminate and carpet cost around $3 to $11 per square foot.

Home Systems

Basements are where you find your home's comfort systems. Plumbing for sinks, baths, and toilets run along the ceiling and down the walls to boilers or water heaters. Sump pumps, furnaces, and HVAC systems are usually here, too. You need to design around these systems since moving them may not be possible or affordable. Placing a water heater in a closet is a possibility, but be sure to check local codes before doing this. Large systems, like boilers and HVAC units, are not so easy to tuck away.

Additional Basement Finishing Cost Factors

Take a closer look at the elements that put the finishing touches on your basement project.

Windows

To keep the space up to code, you must cover the average cost of an egress window, which is $4,215.

Other Rooms & Features

The way you plan to use the basement determines how to best build out the space. You can turn it into a:

• Playroom

• Rec room

• Home theater

• Wet bar

• Home office

• Workshop

Will you need a Wi-Fi router downstairs? Home offices, theaters, and workshops all need high-tech lighting and plenty of outlets, for example, while a wet bar needs water lines and a sink drain.

Cost to Remodel vs. Refinish a Basement

The price of a basement remodel is $4,200 to $45,000, or $20,200 on average. You might frame it out to create different rooms or just add a wet bar to break up the space. Adding a kitchenette and laundry room significantly increases the cost.

DIY vs. Hiring a Basement Finishing Contractor

Finishing a basement is a complex project with many steps, and it's best left to professionals like general contractors or finish carpenters near you. While you might consider DIY to save on labor costs, remember that you'll still need to hire an electrician or plumber for specialized work. Hiring a professional ensures your basement is finished correctly, safely, and up to code.

How HomeAdvisor Gets Its Cost Data

No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.