Construction & estimating · Cost & planning
Cost escalation calculator
Escalate a base estimate by a compound annual rate or by the ratio of cost indices, including mid-construction escalation.
Standard: Compound rate or cost index ratio
Open the live calculator → All construction & estimating calculators
Inputs in the worked example
The live calculator starts with these values; change any of them and every result, check and diagram updates instantly.
| Input | Value | Unit |
|---|---|---|
| Method | Annual rate | |
| Base cost | 2500000 | $ |
| Escalation rate | 4 | %/yr |
| Years from base date to start | 1.5 | yr |
| Construction duration | 12 | months |
| Base index | 132.4 | |
| Current / forecast index | 141.8 |
Worked example — results
| Result | Value | Unit |
|---|---|---|
| Escalation factor | 1.0606 | |
| Escalated cost (at start) | $2,651,490 | |
| Escalation amount | $151,490 | |
| To mid-construction | $2,704,000 |
Method, formulas and assumptions
- Factor = (1 + r)^years; mid-construction adds half the duration
- Use published construction cost indices (e.g. ABS producer price indexes) for your region and trade
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For preliminary design and education. Check every result against the current standard and your own engineering judgement before use.