Budgeting Tips | HomeReno.tools

Building a Realistic Renovation Budget

The difference between a successful renovation and a stressful one often comes down to planning. A realistic budget accounts for everything you'll actually spend, not just the obvious costs.

Total Budget = Materials + Labor + Other Costs + Contingency

The Three Categories

1. Materials

Everything you'll buy for the project: paint, drywall, flooring, fixtures, hardware, fasteners, adhesives, and supplies. Use our calculators to estimate quantities, then price them out at your local store.

2. Labor (Contractor Bids)

What you'll pay professionals. Get at least three bids for any job over $1,000. Contractors typically quote as either:

Lump sum — One price for the whole job. Easier to budget, but make sure the scope is clearly defined.
Hourly — Pay by the hour. Good for smaller jobs or when scope is uncertain, but can add up quickly.

💡 Getting Good Bids

Be specific about what you want. Vague requests get vague bids. Walk through the space with each contractor and point out exactly what needs to happen.

3. Other Costs

The stuff people forget to budget for:

Permits — Required for electrical, plumbing, structural work. Usually $100-500.
Dumpster rental — $300-600 for a week depending on size and location.
Porta-potty rental — $150-300/month if bathrooms are out of commission or you have a crew.
Tool rental — Sanders, saws, tile cutters, scaffolding.
Delivery fees — Heavy materials like drywall and flooring.
Temporary fixes — Living without a kitchen? Budget for takeout.

The Contingency Rule

Every renovation has surprises. That wall you opened up has water damage. The electrical isn't up to code. The floor underneath is uneven. Always add contingency.

Project Type	Recommended Contingency
Cosmetic updates (paint, flooring)	10%
Kitchen or bathroom remodel	15-20%
Older home (pre-1980)	20%
Opening walls / structural changes	20-25%

⚠️ Don't Skip the Contingency

The #1 cause of renovation stress is running out of money mid-project. A 15% contingency on a $20,000 project is $3,000 — that's your insurance against surprises.

Common Budget Mistakes

Underestimating Labor

DIY takes longer than you think. If you're paying yourself in time, be honest about how many weekends you're willing to give up. Sometimes paying a pro is cheaper than the stress and delays.

Forgetting the "Small Stuff"

Outlet covers, switch plates, door handles, cabinet knobs, caulk, painter's tape — it adds up. Budget an extra 5-10% just for miscellaneous supplies.

Scope Creep

"While we're at it, let's also..." is the most expensive phrase in renovation. Decide your scope upfront and stick to it. Save the extras for the next project.

Not Getting Multiple Bids

Contractor prices vary wildly. Three bids minimum for any job over $1,000. The lowest bid isn't always best — look for fair pricing with clear communication.

Tracking Your Spending

Once work starts, track every expense. Keep receipts. Update your budget weekly. Knowing where you stand prevents end-of-project panic.

💡 Save Your Estimate

Our budget estimator lets you save your project as a file. Update it as you get real prices and bids. Compare your estimate vs. actual spending at the end.

Sample Budget Breakdown

Here's what a typical bathroom renovation budget might look like:

Category	Items	Estimate
Materials	Tile, vanity, toilet, fixtures, drywall, paint	$3,500
Labor	Plumber, tile installer, electrician	$4,000
Other	Permit, dumpster, delivery	$600
Subtotal		$8,100
Contingency (15%)		$1,215
Total Budget		$9,315

Ready to Build Your Budget?

Use our free renovation estimator to add up materials, labor, and other costs.

📊 Open Budget Estimator