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There are six levels of drywall finish, from 0 to 5, that refer to the amount of work performed during the finishing process.

Level 0: Drywall is hung with no finishing work.

Level 1: Tape is placed over the seams between drywall sheets.

Level 2: A thin layer of mud is applied over the tape and screw holes. This level is common for utility rooms or walls that will be covered.

Level 3: A full coat of mud covers the screw holes and tape, but the surface is not sanded. This is often used in garages.

Level 4: This is the most common finish for visible interior walls. It involves applying two coats of mud over seams and screw holes, with sanding between each coat, creating a smooth surface ready for flat paint.

Level 5: This is a high-end finish for luxury homes. It includes full taping, mudding, and sanding, plus a final skim coat over the entire surface before painting.

How you hang the drywall can affect the finishing process. It's often easier to finish horizontal drywall panels, as the seams run across the wall rather than up and down. Standard drywall panels are 48 inches wide, so the seam is easy to reach without bending down or stretching your arms.

Although they are used for similar tasks, spackle and joint compound are not the same. Joint compound, also known as drywall mud, consists of limestone and gypsum and is primarily used for large-scale projects like taping and finishing seams on new drywall. Spackle is composed of gypsum and binding agents, making it a thicker compound best suited for small wall repairs like filling nail holes or cracks, as it dries quickly and is easy to sand. For small repairs, either product can be suitable. However, you can use joint compound for small jobs in place of spackle, but you cannot use spackle for large-scale taping and mudding projects.

If you already have plaster walls and ceilings, adding new plaster costs $2 to $10 per square foot. For an average-sized room, that would come out to $1,200 to $10,000. However, the cost to replace plaster with drywall is higher—running between $720 and $1,250 for a 10-by-8-foot wall or ceiling (not including drywall finishing).