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How much should be the budget to open a CBSE school?

How much should be the budget to open a CBSE school?

This is a very common question which comes in mind of any promoter planning to set up a school, the cost of setting up a school depends on the purpose and motto for which you are planning to open a school.

Below are the few preliminary points to be considered before planning the budget for opening a school:

  • What is the purpose of setting up of school?
  • Do you have a piece of land as per CBSE requirements or you need to purchase?
  • What kind of school are you looking for? Residential or day school?
  • Till which standard are you planning for the school?
  • What all extracurricular activities you want to add on in the campus apart from academics?

Calculations based on certain average data for setting up of a new CBSE / ICSE School
Plot Area (1.5 Acre for CBSE / 1.0 Acre for ICSE) for any non exempted city as per CBSE / ICSE board affiliation guidelines.
Construction approximately 55-60000 sq ft for accommodating 2280 students in a 4 section model.

Phase – I Construction area 20-25000 sq ft
Phase – II Construction area 18-20000 sq ft.
Phase – III Construction area 12-15000 Sq ft.


Cost of construction average Rs. 1000 per sq ft. (It may vary from place to place and the expertise of the promoter)

Cost of furnishing average Rs. 350-500 per sq ft. (Or more, depending on the quality of furnishing promoter would like to have)

Establishment and initial operational cost including promotion and branding would be approximately 1.00 Cr (This also may vary from place to place)


The breakeven point for any school project is usually classified under two categories
01. Operational Breakeven: Stage where all the operational cost of the school are met with the revenue being generated by the school only. (Usually the period is 3 to 4 years)

02. Capital Breakeven: Stage where all the investment made in the school is back, with interest with the revenue generated by the school. (Usually the period is 9 to 10 years)

All the above mentioned data is based on certain quality standard of the school, which may vary depending on the plan, vision and motto of the promoter.

Further for more information on how to proceed with the planning of budget or for any other queries please feel free to contact us at 8889063333 or you can drop an email at /

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