How to Set Up a Home Recording Studio on a Budget


You don’t need a professional studio to make great music. But you do need more than just a laptop and headphones if you want recordings that sound intentional rather than accidental. Here’s how to build a functional home studio for under $1,500 AUD, with recommendations based on what Australian producers and musicians actually use.

The Essential Gear

Audio Interface ($200-$400)

The audio interface converts analogue sound (your voice, your guitar) into digital audio your computer can work with. It’s the most important piece of gear you’ll buy.

Focusrite Scarlett 2i2 ($250 AUD): The industry standard for home studios. Two inputs, reliable drivers, solid preamps. Nearly every home producer I know started with one of these.

Universal Audio Volt 276 ($350 AUD): A step up from the Scarlett with a built-in compressor and slightly better preamps. Worth the extra money if your budget allows.

PreSonus AudioBox USB 96 ($180 AUD): The budget option. Perfectly functional for getting started, though the preamps are noisier than the Focusrite or UA.

Microphone ($150-$400)

For most home studios, one good condenser microphone covers vocals, acoustic guitar, and many other sources.

Audio-Technica AT2020 ($170 AUD): Reliable, clean-sounding, and forgiving of imperfect recording environments. My go-to recommendation for beginners.

Rode NT1-A ($350 AUD): Australian-made and excellent. Very low self-noise, detailed sound, and a classic that’s earned its reputation. If you’re serious about vocal recording, this is the mic to get.

Shure SM58 ($160 AUD): Not a condenser — it’s a dynamic mic designed for live use. But it’s nearly indestructible, handles loud sources well, and sounds surprisingly good on vocals in untreated rooms. Every musician should own one.

Headphones ($100-$300)

You need two types ideally, but can start with one.

Audio-Technica ATH-M50x ($230 AUD): Closed-back headphones for tracking (recording) and rough mixing. The most popular headphones in home studios worldwide, and for good reason.

Beyerdynamic DT 770 Pro ($250 AUD): The main alternative to the M50x. Slightly more comfortable for long sessions, with a wider soundstage.

Monitor Speakers ($300-$600 for a pair)

Studio monitors let you hear your music accurately, without the coloured sound of consumer speakers.

PreSonus Eris E3.5 ($180 pair): Budget monitors that are honest enough for home production. Not detailed enough for professional mixing, but a huge improvement over laptop speakers or Bluetooth speakers.

Yamaha HS5 ($550 pair): The step-up option that many producers consider the minimum for serious mixing. Accurate, revealing, and a home studio staple.

Acoustic Treatment ($100-$300)

This is the most overlooked aspect of home studios, and arguably the most impactful.

Your room affects your recordings and your ability to mix accurately far more than any piece of gear. A $5,000 microphone in an untreated bedroom will sound worse than a $200 microphone in a properly treated one.

Basic treatment kit: 6-8 acoustic foam panels ($50-100 from local music stores or online), a reflection filter for behind your microphone ($60-120), and heavy curtains or blankets to cover reflective surfaces ($50-100).

Placement: Put panels at the first reflection points (the walls directly to your left and right when facing your monitors, and the wall behind your monitors). The reflection filter goes behind your microphone to reduce room ambience in vocal recordings.

The wardrobe trick: If you have a walk-in wardrobe or large cupboard, it’s already a decent vocal booth. Hang clothes around the walls, set up your mic inside, and you’ll get surprisingly clean vocal recordings.

Software ($0-$200)

DAW

Reaper ($60 evaluation): Best value for money. Full-featured, efficient, and endlessly customisable.

GarageBand ($0): If you’re on Mac, start here. It’s more capable than people give it credit for.

Cakewalk by BandLab ($0): Windows users get a professional-grade DAW for free.

Plugins

Start with the stock plugins that come with your DAW. They’re better than most people realise. When you’re ready for more:

TDR Nova (free): Excellent dynamic EQ. Analog Obsession (free): A full suite of analogue-modelled compressors, EQs, and effects. Valhalla Supermassive (free): Beautiful reverb and delay. Vital (free): A powerful synthesiser for electronic production.

The Setup

Desk placement: Position your desk away from walls if possible. If you must be against a wall, treat the wall behind your monitors heavily.

Monitor placement: Form an equilateral triangle between your head and the two monitors. Tweeters should be at ear height.

Cable management: Get a few cable ties. Tangled cables create noise, mess, and frustration.

Total Budget

Here’s a realistic sub-$1,500 setup:

  • Audio interface (Focusrite Scarlett 2i2): $250
  • Microphone (Audio-Technica AT2020): $170
  • Headphones (Audio-Technica ATH-M50x): $230
  • Monitors (PreSonus Eris E3.5): $180
  • Acoustic treatment (basic kit): $150
  • Cables and accessories: $80
  • DAW (Reaper): $60

Total: $1,120 AUD

That leaves budget for upgrades and extras. Spend the rest on a pop filter ($20), a decent mic stand ($50), and maybe a MIDI keyboard ($100) if you want to play software instruments.

This setup is capable of producing professional-quality recordings if you invest time in learning your tools. The gear is not the bottleneck. Your skills are, and those improve for free with practice.

Start recording. Start learning. Start making the music you hear in your head.