Table of Contents
Quick Summary
- The budget for Home Renovation is a customised idea.
- Rising property costs and changing living habits are the reasons for renovation. It is a practical option for many homeowners.
- Renovation decisions work best when they focus on comfort, efficiency, and better use of space.
- Clear priorities prevent unnecessary upgrades and keep plans realistic.
- Early planning helps avoid surprises in cost and timelines.
- A fixed budget is needed to practice financial discipline all through the project.
- Local and national cost ranges offer a useful starting point.
- Comparing contractor quotes helps identify fair pricing.
- Budgeting apps make it easier to track spending and payments.
- Breaking costs down by room and task improves clarity.
- Expenses like permits, waste removal, and surveys are often missed.
- Temporary living adjustments can increase day-to-day costs.
- Regular expense tracking reduces the risk of overspending.
The budget for home renovation varies from one project to another. The rising house prices, the pandemic-induced lifestyle changes, and today’s “race for space” have left millions of households with one choice: renovating their homes. But while a renovation project seems to make sense for the 56% of Americans who upgraded their homes in 2021, the expenses associated with a remodel aren’t to be taken lightly!
Whether you are a seasoned renovator or you are just about to embark on your first project, budget for home renovation and track cost of the same can help you stay in control of your finances and enjoy your new home without regrets.
Pinpoint Your Priorities (and DIY-Friendly Tasks)
Choosing between buying a new home or renovating your current one isn’t always easy – but your choice of opting for a renovation shouldn’t come solely from your desire to save money!
Renovation projects should aim to upgrade your home’s energy efficiency and comfort, introduce smart appliances and better-designed spaces, and create a living space better tailored to your lifestyle needs.
That’s why the first step of any renovation project is to determine your priorities and goals, estimate realistic costs, and set your expectations.
If your budget doesn’t stretch to a full-house renovation, speak to your contractor to understand the cost involved and check if some of the tasks can be completed without the help of a professional renovator.
Determine a Renovation Budget Before Getting Started
While some costs might be out of your control, it is important to set an overall renovation budget for your project, which will work as a guideline through each phase. If you are unsure what to expect from upcoming home renovation costs, looking at the national and regional average for each project can help.
For example, according to recent estimates, renovating a home can cost between $17,905 and $78,013, or $10-$60 per square foot. But while the average cost of a renovation in the US is $47,813, some projects can be as expensive as $150 per square foot!
Pro Tip: Once you have an idea of what you should be paying for your project, get in touch with different contractors, ask for bids, and compare quotes to find the budget friendly renovations and fulfill your needs.
Use a Renovation Budgeting App
An estimated 69% of renovation and construction projects go over budget, and homeowners are often overwhelmed by unexpected expenses and unforeseen costs. But this doesn’t mean that you should just surrender to the fact that you’ll have to find extra funds to complete your project! Get a free or cost-effective renovation budget planner application and ease your work.
Interactive tools such as the SoFi money management app provide households and contractors with all the features needed to manage budget for home renovation and track expenses during the ongoing work.
These include:
- Customisation
- Project shareability
- Payment tracking
- Updates monitoring
- Contractors’ details storage
Just give it a try and start tracking activities, direct and indirect activities. Merge tracking system with below mentioned hacks to achieve the desired economical home renovation project.
Create a Detailed Breakdown of Expenses – And Beware of Hidden Costs!
Creating an efficient budget for your upcoming project is all but easy – especially if you are unsure about the expenses you’ll face. Depending on the type of project you are looking to complete, overall or gross estimates might not be the best way to track cost and your money.
Instead, consider crafting a house renovation budget that is subdivided by rooms or spaces that need renovation, materials, and labor costs. Some hidden costs to be aware of (and take into account) include obtaining permits, disposal of materials and debris, and land or property surveys to determine ownership lines.
Don’t forget that while your house is being renovated, you’ll deal with disruptions in your daily life, which might require you to afford extra costs such as dining out, pet or childcare or even hotel rooms.
Record Real Time Expenses for Money Management
If you are working with a single company or a renovation contractor, they might be delivering a comprehensive quote with the project’s breakdown, timelines, milestones, and recurring payment deadlines.
However, if you are working with more than one professional, you’ll be responsible for keeping up with payments, tracking transactions, and making sure that you’ll have enough funds to pay the next bill!
Recording transactions in real-time, reviewing milestones and making sure that your team is sticking to the expected timelines can help you be more in control of your finances throughout your project.
Conclusion
In all, here are basic steps or let’s say it a flow to check before starting up any remodeling project and save your bank by framing pocket friendly budget for home renovation. Give a kick start, brainstorm and make it possible.
Well, the perks of low cost renovation are wide scope to consider. Along with the cost, there are other essential factors that should be marked carefully. Have a click and aware yourself.
20 Things You Should Know Before Planning an Old House Renovation
FAQs on Budget for Home Renovation
1. How Much Budget Should I Fix for My Home Renovation?
There is no single number of renovations that fits every home. Renovation costs largely differ on the size of the space, materials used, and labour rates in your area. Reviewing local price ranges and setting a buffer helps avoid last-minute financial pressure.
2. What Renovation Costs do Homeowners Mostly Overlook?
Homeowners mostly overlook the expenses related to permit fees, debris removal, temporary storage, and short-term living expenses. Small items add up quickly, especially during longer projects, and should be planned for early.
3. Is Renovating Cheaper Than Buying a New Home?
Renovation may cost less if the structure is sound and you can plan the upgrades wisely. Poor planning if renovation or frequent design changes often trigger higher expense. It can turn renovation cost as expensive as purchasing another property.
4. How Can I Maintain a Budget for My Renovation Project?
Precise planning, written estimates, and tracking expenses as work progresses make a big difference. You can compare different contractor quotes and, in this way, can avoid the burden of impulse upgrades. It helps in maintaining a strict budget on the renovation project.
5. Do Renovation Apps Really Help Manage Costs?
Yes, they can prove helpful for recording payments, monitoring expenses, and reviewing progress. Having all figures in one place makes it easier to spot issues before they affect the overall budget.
Author & Expert Review
Written By: 
Swagata Chatterjee | SEO Content Writer & Editor
| Credentials: MA (Calcutta University, Kolkata). Experience: Content Writer and Editor with 19 years’ experience of business content writing and editing, currently writing SEO-optimized, readers’-friendly articles for Gharpedia, part of SDCPL. Expertise: Specializes in writing well-researched content on lifestyle, home décor, , lifestyle, safety, home appliances and gadgets, on-site SEO Optimization, blending technical accuracy with general reader’s ability to learn the topics. Find her on : Linkedin |
Verified By Expert: 
Farhan Sheikh – Senior Manager – Architect, SDCPL | Associate Member – IIA
This article has been reviewed for architectural and interior design accuracy by Farhan Shaikh, Senior Manager – Architect at Sthapati Designers & Consultants Pvt. Ltd. As the lead for all architectural and interior projects at SDCPL and an Associate Member of the Indian Institute of Architects (IIA), he brings hands-on experience in architectural planning, interior design, project coordination, and sustainable strategies. His review ensures the content reflects practical design considerations, industry best practices, and real-world applicability across both architecture and interior spaces.
Find him on : Linkedin
