Breaking down expenses: How much does a septic system cost?

About 25% of U.S. homeowners rely on home septic systems. Much like your roof, a septic system requires regular maintenance and occasional replacement.

Replacing a home’s septic system is often an expensive and complicated undertaking. Homeowners should know that septic tank replacement isn’t a DIY-friendly repair. You’ll generally need to hire licensed professionals to ensure your septic system is installed safely and complies with local land codes.

How much does a new septic system cost?

The cost of a new septic system ranges from about $3,500 to $12,500, according to Angi. Your final price tag varies based on several factors, which we'll explore further below:

Types of septic systems

Septic tank replacement costs depend largely on the durability of its materials:

• Concrete: Concrete tanks are some of the most common types of septic tanks found in homes. However, property owners should keep in mind that concrete is prone to cracking. Concrete septic tanks cost between $700–$2,000. ‍
• Fiberglass: Fiberglass septic tanks are less likely to crack than concrete septic tanks. Their lightweight material can sustain structural shifts below the home, which minimizes the risk of tank damage. Fiberglass septic tank prices range from $1,200–$2,000.‍
• Plastic: Plastic septic tanks start at just $500, making them less expensive than concrete and fiberglass septic tanks. However, given their flimsy material, plastic septic tanks can easily break, making them a risky investment for many homeowners.‍
• Steel: Nowadays, installing a steel septic tank is rare. While many homes currently have such tanks buried in their yards, most septic tank professionals will advise against steel tank installing as a replacement. Steel is prone to rusting, which makes steel septic tanks a safety hazard to your property.

Aerobic vs. anaerobic septic tanks

Anaerobic septic systems are popular among homeowners because they’re more affordable. However, some homeowners prefer aerobic treatment units because they’re more efficient. The price difference between the two is steep, with anaerobic systems ranging from $3,000–$8,000 and aerobic systems ranging from $10,000–$20,000.

Property size

Another factor affecting septic system replacement costs is property size. The bigger the house, the larger the septic tank needed. Homes with multiple bedrooms tend to have more people generating wastewater on a regular basis than homes with just one or two bedrooms.

Here’s a quick breakdown of how much a septic tank costs by house size:

Drain field conditions

The drain field — also known as the leach field — disposes of the treated wastewater from your septic system through a series of underground pipes. Virtually all septic systems require a drain field. On average, installing a tank and drain field costs between $5,000 and $12,000.

Drain fields are generally custom-designed by professionals based on your property constraints, home size, soil conditions, local laws, and other factors.

Labor costs

The cost of labor generally makes up between 50% to 70% of your total septic system installation costs. That’s between $1,750 and $8,750, given the national average cost range ($3,500 to $12,500). 

You’ll want to check with your contractor on what, exactly, is included. If your contractor doesn’t include the cost of excavation, you’ll typically need to pay an additional $1,500 to $6,300 for this expense. 

Additional factors to consider

You will also need site assessments, permits, and other related expenses. These may or may not be included in your contractor’s estimate. If not, here’s a breakdown of additional expenses:

Design and engineering fees

Depending on the type of septic tank and local regulations, you may need to hire a professional to develop an engineered solution for your septic system installation. Most people need to hire an engineer to design the leach field, as well. Septic system design and engineering fees usually cost between $125–$200 per hour.

Percolation testing

Percolation testing is essential to determining whether or not a standard septic tank installation is possible. Perc tests analyze the soil quality and drainage capabilities around the proposed area of a septic system installation. Percolation tests usually cost between $700 and $2,000.

‍A failed percolation test means a soil’s percolation rate is too low, perhaps due to a high water table or poor soil texture, and may be unsuitable for a septic system installation. In this case, you’d need to explore an alternative septic system or test another area on your property.

Permits and inspections

Local governments consider septic system installations land improvements, which often require permits before work can begin and inspections once work is underway. They’ll want to review your contractor’s printed plans to verify the system will be built to code and won’t become a health hazard. Homeowners can obtain these permits from their state and local governments. The average cost of a septic permit is between $450–$2,300. 

Land surveys

Lastly, homeowners will need to hire a licensed professional to conduct a land survey. It’s important to make sure that the proposed site for your septic system installation is actually on your property. The last thing you want to do is install a brand-new septic tank beyond your property lines. Depending on property size and layout, homeowners can expect to pay between $330–$900 for a land survey.

How to save money on septic system installation

Installing a brand-new septic tank onto your property can get quite expensive. Here are a few actions you can take as a savvy homeowner to save money.

Get multiple quotes

Gather at least three quotes from qualified companies who are insured and have good reviews. Once you’ve created a list of quotes from trustworthy companies, compare and contrast the most cost-effective option.

Compare pricing on materials separately

Another way to reduce septic system costs is to purchase the materials needed for installation separately from the contractor you’re hiring. When requesting quotes from different septic system installation companies, ask if they would be willing to install materials you’ve purchased separately.

Big companies may not want to install materials they’re unfamiliar with due to warranty or insurance policies. Small contractors, on the other hand, might be more willing to negotiate. Check with your chosen septic system company before spending money on any materials.

Plan for the off-season

Schedule installation or replacement during off-peak periods when labor demand is lower, as contractors might offer discounted rates and more flexible scheduling.

Explore incentives

Look into state or local rebates, financing options, or tax incentives that might help offset installation and replacement costs.

Keep up with septic system maintenance and care

Once your septic system is in place, make sure you treat it right to avoid premature failures, which can be costly and messy:

• Try to reduce and spread out your water usage throughout the week.
• Don’t drive or put heavy things on your drain field, since the pipes aren’t buried very deep and can crack.
• Get your septic system pumped and inspected according to the design doc’s recommended intervals.
• Avoid putting oils, fats, paper towels, feminine hygiene products, and other clog-inducing items down the drain. That includes avoiding your disposal, too, as much as you can. 

How to cover the cost of a new septic system

It’s always best to save up in advance for big projects like replacing your septic system. The reality is that’s not always an option, though. Here are some common ways people pay for new septic installs:

• Personal loans: Homeowners can cover necessary costs through personal loans. While personal loans are not recommended for property owners with less-than-ideal credit scores, there are some home improvement loans available for bad credit. If you have a good credit score, you might be able to take out a lower-interest or zero-interest rate loan.
• Home equity loans and lines of credit: Another way homeowners can fund a new septic system installation is through a home equity loan or home equity line of credit. Both financing methods allow homeowners to use their homes as collateral in exchange for either a lump-sum payment or a credit line. Access to lower interest rates makes home equity loans and home equity lines of credit an attractive option for many homeowners. However, the amount of money you’re allowed to borrow depends on how much equity you’ve accumulated in your home.
• Home equity investments: Homeowners can leverage a home equity investment (HEI) to cover the expense of a new septic system. An HEI offers a lump sum of cash in exchange for a share of the home's future appreciation. Homeowners can buy back their equity anytime during the 30-year term or repay their investment through the sale or refinance of their property. There are no monthly payments during the flexible 30-year term. To qualify, you'll need a minimum credit score of 500, sufficient equity, and a home in an eligible location.

Installing a septic system on your property is a significant financial investment. It also requires frequent upkeep to prevent premature failure, and even with perfect maintenance, it’ll eventually need to be replaced. Homeowners are generally 100% responsible for this cost.  

Paying for a new septic system installation may seem daunting, but it doesn’t have to be. You can use a wide range of products like personal loans, home equity loans, or home equity investments to pay for a new septic system. If you can't afford financing, check with your local government to see whether it offers low-cost loans and grants.