Build a Home Studio for $500: Complete Guide 2026

Home studio setup on a $500 budget

Want to start music production on a tight budget? Good news: with $500, you can build a complete functional home studio to produce quality music.

In this guide, we'll see exactly what to buy, how much it costs, and how to set everything up. This setup will allow you to record, produce, mix and even master your first tracks.

💰 Budget Breakdown ($500)

Audio Interface$16032%
Microphone$8016%
Monitoring Headphones$8016%
DAW (software)$6012%
Cables & Stand$6012%
DIY Acoustics$6012%
TOTAL$500100%

⚠️ Important

This budget does NOT include computer. We assume you already have a PC/Mac. If not, add $400-600 for sufficient laptop/desktop.

🎹 1. DAW (Production Software) – $60

Our recommendation: Reaper ($60)

🔊 Cockos Reaper

Price: $60 (lifetime personal license)

Why Reaper?

  • Cheapest on market (others = $200-600)
  • Ultra complete: Recording, MIDI, mixing, mastering
  • Light on resources: Runs on any PC
  • Free lifetime updates
  • 60-day free trial (full version)
View Reaper

🎚️ 2. Audio Interface – $160

Our recommendation: Focusrite Scarlett Solo 4th Gen ($160)

🎸 Focusrite Scarlett Solo 4th Gen

Price: ~$160

Specifications:

  • ✅ 1 XLR/Jack combo input (mic or instrument)
  • ✅ Quality Scarlett preamps
  • ✅ Air Mode (brightness on vocals)
  • ✅ Headphone + monitor outputs
  • ✅ USB-C bus-powered
  • ✅ Software bundle included (Ableton Live Lite, Auto-Tune, plugins)
View on Thomann

🎤 3. Microphone – $80

Our recommendation: Audio-Technica AT2020 ($80)

🎤 Audio-Technica AT2020

Price: ~$80-90

Type: Large diaphragm condenser mic

Why AT2020?

  • Clear precise sound: Perfect for vocals
  • Versatile: Vocals, acoustic guitar, overheads
  • Robust: Excellent build quality
  • Industry standard at this price

⚠️ Note: Requires +48V phantom power (included in Scarlett Solo)

View on Thomann

🎧 4. Monitoring Headphones – $80

Our recommendation: Audio-Technica ATH-M40x ($80)

🎧 Audio-Technica ATH-M40x

Price: ~$80

Type: Closed studio headphones

Why M40x?

  • Neutral response: Perfect for mixing
  • Excellent isolation: Closed-back
  • Comfortable for long sessions
  • Professional build quality
  • Detachable cable
View on Thomann

🛒 Complete Shopping List ($500)

EquipmentRecommended ModelPrice
DAWReaper License$60
Audio InterfaceFocusrite Scarlett Solo 4th Gen$160
MicrophoneAudio-Technica AT2020$80
HeadphonesAudio-Technica ATH-M40x$80
XLR CableCordial/Thomann 3m$15
Mic StandDesktop boom arm$25
Pop FilterGeneric$10
Headphone StandGeneric$10
DIY AcousticsRockwool + fabric$60
TOTAL$500

🎯 Conclusion: You're Ready!

With this $500 setup, you have everything to:

  • ✅ Record vocals and instruments with studio quality
  • ✅ Produce your beats/tracks in professional DAW
  • ✅ Mix precisely with headphones
  • ✅ Treat your room acoustically (DIY)

Next steps: Order equipment, download free VST plugins, watch Reaper tutorials, and start creating!

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