Accurate cost estimation is critical in mid-rise construction projects, often relying on pre-sales for financial support. Inaccuracies in cost estimation and allocation may lead to budgetary challenges, project delays, and substantial cost overruns. While traditional cost allocation systems, exemplified by activity-based costing (ABC), are recognized in the industry, their time-consuming nature limits their practical utility. In contrast, contemporary tools such as building information modeling (BIM) offer a transformative advantage by swiftly generating precise information that significantly enhances the accuracy of cost estimation. Previous studies in this domain have been extensive; however, many studies either lacked precision in their methodologies or relied on oversimplified assumptions. This study bridges a knowledge gap by integrating BIM and ABC, enhancing cost estimation and visualization in mid-rise construction. It introduces a valuable framework for visualizing cost allocation. The proposed model leverages ABC to assign direct and overhead costs within a BIM model, displaying them in a color map representation. Costs, along with their drivers, are calculated and visually presented, offering a quick analysis of cost distribution. This innovative framework facilitates the swift assessment of cost changes associated with model modifications, providing project managers and stakeholders with a nuanced breakdown of total costs. Implemented in a real mid-rise construction project in Iran, the model’s results illuminate cost concentration in various elements, contributing to a deeper understanding of unit costs and empowering better decision-making. Furthermore, the introduced model can serve as a plugin for BIM software, promoting its practical application in the industry.