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

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Inputs in the worked example

The live calculator starts with these values; change any of them and every result, check and diagram updates instantly.

InputValueUnit
MethodAnnual rate
Base cost2500000$
Escalation rate4%/yr
Years from base date to start1.5yr
Construction duration12months
Base index132.4
Current / forecast index141.8

Worked example — results

ResultValueUnit
Escalation factor1.0606
Escalated cost (at start)$2,651,490
Escalation amount$151,490
To mid-construction$2,704,000
01234562.62.833.2yearscost ($M)start
Diagram for the worked example

Method, formulas and assumptions

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For preliminary design and education. Check every result against the current standard and your own engineering judgement before use.