Photo of Backyard Shed

Cost to Build a Backyard Shed

Chances are you could use a backyard shed to keep your tools, lawn and garden equipment, and more. You might be wondering how much it would cost to build that shed.

Of course, the cost will depend on the shed’s size, the materials are used, whether or not there is a foundation required, and if you need plumbing and electricity in the shed.

The other thing to consider is if you will be hiring a pro to do the work or if you plan on making this a DIY project. Let’s take a look at how much building a shed is going to cost.

Average Cost to Build a Shed

The average cost to build a shed is anywhere from $17 to $24 per square foot; this depends on size, the quality of materials, the number of doors and windows, etc.

At the very least, you will spend at least $200 and $30,000 at the most, with the overall average being somewhere around $2,500.

An 8’ x 8’ shed can cost anywhere from $300 to $3,000 to build, whereas a 10’ x 10’ shed could cost anywhere from $500 to $5,000.

Factors to Consider

Man making backyard shed

Before you decide on building the shed yourself, buying a prefab shed kit, or hiring a pro to do it all, there are some factors to consider which can influence the project’s cost.


To build a shed, you are going to need the proper materials. If you make the shed yourself, consider that you will need to purchase all of the lumber, and maybe concrete or cement, plus anything else you plan on outfitting your shed with.

On average, it will cost less to buy your own materials (especially if you find the right outlets) than it is to buy a prefab shed kit.

That said, consider that a professional contractor may be able to buy those materials in bulk for reduced costs, which can save you money. Also, consider that you will need to transport these materials home.


The next factor is the tools you need and which ones you already have.

If you only need to buy a handsaw, a hammer, a screwdriver, and some screws, you can probably save money by building the shed yourself or even using a prefab shed kit that doesn’t really require much sawing or anything else of that nature.

However, if you want a big shed with all the bells and whistles, you might need many professional power tools like drills and circular saws, and these things can become very costly.

Hiring a pro can save you money in this sense because they have all of the tools.


One of the most significant cost factors to consider is labor. If you build your own shed or buy a DIY prefab shed kit, there is no labor cost involved – it’s all up to you.

When it comes down to it, you can expect the cost of hiring a professional, just for the labor, to be anywhere from 40% to 60% of the final price.

A shed that costs $2,000 for a pro to build really costs $900 to $1,100 for the materials (on average), with the rest being the labor cost.

Skill Level

Your skill level might not sound like something that will affect your overall bottom line, but that assumption would be wrong.

The fact of the matter is that you will end up wasting building materials when you start making mistakes, such as sawing boards too short or at the wrong angles.

Making mistakes can be costly, mainly when there is lumber involved.

Time Required

The other factor to consider is how much time you have. After all, time is money. You might have weeks or months to build the shed, or you might need that shed made by next week, and you don’t have time to spare.

The fact is that you need to consider what your own time is worth.


As you can see, there are plenty of factors that require your consideration.

Once you have considered each one, you can then figure out the best and most cost-effective attack plan.

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