How to Calculate Your Home Renovation Budget

Renovating your home is an exciting project that can breathe new life into your living space.

Whether you’re adding a new room, upgrading your kitchen, or simply giving your home a fresh coat of paint, it’s important to plan your budget carefully to ensure that you don’t overspend.

Here are some steps to help you calculate your budget when planning your home renovation.

Let’s dive in.

1. Determine your overall budget

Start by figuring out how much you can afford to spend on your home renovation.

Consider your income, expenses, and any other financial obligations you have.

Take a realistic approach to this step as overextending yourself financially can create stress.

2. Decide on the scope of the project

What is it that you want to do? What is your vision?

List out all the things that you would like to get done in your renovation. Go find some inspirational photos/videos off of social media such as Instagram, Pinterest or TikTok.

This could include things like new flooring, fixtures, or appliances.

Once you have a clear idea of the scope of the project, you can start breaking down the costs associated with each item on your list.

white and gray box fan

3. Get quotes

It’s important to get quotes from multiple contractors and suppliers.

This will give you an idea of what each item on your list will cost.

It’s important to keep in mind that the cheapest quote isn’t always the best option.

You can hire the cheapest person but you face the risk of having to call in another builder in the future to fix the mistakes/deficiencies caused by the cheaper quote.

Look for a balance between quality and affordability.

silver and black beads on brown wooden drawer

4. Allocate your budget

Now that you know how much each item on your list will cost, you can start allocating your budget.

Decide which items are most important to you and allocate more money to those items.

It’s also important to leave some wiggle room in your budget in case unexpected costs arise.

5. Keep track of expenses

As you start your renovation, keep track of all your expenses.

This will help you stay on budget and identify any areas where you might be overspending.

You can use budgeting apps or spreadsheets to help you keep track of your expenses.

6. Be flexible

Renovations rarely go exactly as planned, so it’s important to be flexible with your budget.

If unexpected costs arise, you may need to adjust your budget to accommodate them.

Remember, it’s better to be flexible than to overspend and create financial stress.

Conclusion

Overall, renovating your home can be an exciting project, but it’s important to plan your budget carefully to ensure that you don’t overspend.

By following these steps, you can create a realistic budget that will help you achieve your renovation goals without breaking the bank