The cost to install drywall is about $1.50 per square foot. After material and labor are added in, the cost per panel can range from around $40.00 to $60.00. A typical 12x12 room, for example, will use 12 panels.he cost to install drywall is about $1.50 per square foot. After material and labor are added in, the cost per panel can range from around $40.00 to $60.00. A typical 12x12 room, for example, will use 12 panels.