Doing it yourself: How to calculate the true cost of a DIY project
The term DIY or doing-it-yourself has been gaining popularity since the 1950’s. These days, DIY has become almost synonymous with the potential to save money. If one has the skills and the time, it’s almost always cheaper to build or fix something yourself. But, there’s a breakeven point on any given task where paying for someone else's help and saving money by doing it yourself eventually reverse and it’s cheaper to pay a skilled professional.
Want to figure out whether doing it yourself makes financial sense? Easy. All it takes is a little research and some simple math.
The formula below can save you from getting in over your head or losing money in an attempt to economize. Just ask yourself these questions:
1. How much would a professional job cost?
Before you decide whether a DIY project is worth it, find out how much it would cost to have a professional do it. If it’s a construction or gardening project, get quotes from contractors.
One thing you want to avoid is just asking AI or Google for an estimate. Without exact specifications, AI and search engines may return with incorrect repair costs. For example, asking AI or a search engine how much new brakes for a car cost isn’t overly useful as the costs vary wildly between car makes and models. Remember, for the most accurate estimate, contact a professional.
2. How much will materials cost?
Add up all of the materials you’ll need, including the cost of any tools required. You can often save money on DIY projects by using reclaimed materials and borrowing or renting tools instead of buying them. Pro-tip, many tools can be rented from your local library or occasional co-op.
If you’re considering a home improvement project, add in the cost of getting a permit. Subtract this amount from the cost of a professional job to determine your savings. If you get a negative number, doing it yourself will actually cost more than paying someone else.
3. How long will it take?
A DIY project is only worth it if your time investment doesn’t outweigh the money you’ll save. You don’t want to spend months and months on a project that a professional could finish in a day or two—or one that saves you a small amount of money comparatively. But time is much harder to estimate than cost. Your experience and skill level play a role, as does the complexity of the task. You might be able to find decent estimates online of how long a job takes for novice, intermediate and expert do-it-yourselfers.
Remember, there are costs associated with just learning a skill due to errors, setbacks, etc. Don’t bite off more than you can chew on your next kitchen remodel of complex car repair, as it may costs even more for a professional to fix what you may have messed up. (Anyone that’s ever hit a water or sewage pipe can relate.)
4. How much will you save per hour?
Divide your cost savings by the amount of time it will take to find out how much you’ll save per hour by doing it yourself. This is the “wage” you’ll earn by doing the job yourself.
5. Safety and peace of mind
One of the most priceless things in the world is peace of mind. Hiring an expert professional provides the peace of mind you need. For example, if you have no mechanical expertise and decide to DIY a major car repair, how confident would you be about the safety of your vehicle at high speeds? If you have to make a major roof repair, how confident are you in the safety requirements to prevent injuries like falling from the roof? And if you do sustain an injury, do you have the health insurance needed to treat it? These factors and more should be considered when DIY anything, but especially for home and car repairs.
Whether you’re hiring a professional or doing it yourself, you’ll still need to pay for either services or tools. Large home repairs can be financed with an OCCU home equity line of credit. Alternatively, for smaller DIY projects, an OCCU credit card might fit the bill. But at the end of the day, it depends on your own skill level and resources if a DIY project is truly worth the effort.
