How to Estimate Home Renovation Costs

Setting a budget for a home renovation can be difficult, especially if you’ve never done it before. Home renovation costs vary widely depending on what you’re doing, where you’re doing it, and whether you’re doing the job yourself or hiring it out to a professional. Other cost factors—including the size of the space and the materials that you’re going to be using—are just as important in coming up with your estimate. Oh, and don’t forget about the unforeseen costs often associated with renovations, such as surprise electrical work and whatever else might be hiding behind the walls.

Here’s the thing: coming up with an estimate for home renovation costs isn’t easy, and you might not even be able to nail it right on the head (no pun intended)—but it is necessary. A renovation, whether it’s one room or an entire house, is a major undertaking, and a pricey one at that. It’s important that you have a general idea of what you’re going to need to spend to do the job right, and that you know you have enough room in your budget to make it happen.

Fortunately, we’ve got some tips that can help you estimate your home renovations costs and get a handle on your budget. Keep reading to learn more about the factors you’ll need to account for and the standard costs that will help guide your total renovation spend.

5 Factors to Consider When Estimating Home Renovation Costs

Let’s circle back for a second to the key factors that you’ll need to keep in mind when you come up with an estimate for your home renovation costs. While there are certainly a lot of things that contribute to your final costs (including those aforementioned unforeseen issues), these five factors are where you want to start when it comes to setting your budget.

The extent of the remodel

The size of your space

The condition of the property

Where you live

Design and materials

Average Home Renovation Costs

The typical range for a home renovation costs between about $18,500 and $75,700, according to HomeAdvisor. That’s a pretty big range. So how does it all break down? Let’s take a look at what you might expect to spend room by room.

  • Kitchen – Average Cost: $25,071
    The kitchen is the most expensive room in a house to renovate. That’s because there’s a lot that goes in to a kitchen redesign, from flooring and cabinets to counter tops and appliances. It all adds up fast, and will probably eat up a major portion of your renovation budget.
  • Bathroom – Average Cost: $10,449
    There’s a lot of variability in terms of bathroom renovation costs (size of the space, whether it’s a half bath or full bath, etc.), but the average cost is between $10,000 and $11,000. Need to convert a half bath to a full bath? That alone will cost you at least $5,000, so be sure to consider that when pricing out the job.
  • Living room and bedrooms – Average Cost: $1,000 to $5,500
    Living rooms and bedrooms tend to be quite reasonable as far as home renovation costs go. That’s because you’re not dealing with expensive fixtures, materials, or plumbing. New flooring and some paint on the wall are usually all that’s required here, but err on the higher end if you’re also replacing windows or dealing with costly features like fireplaces or vaulted ceilings.
  • Basement – Average Cost: $20,146
    Remodeling a basement can add a lot of functionality and value onto a home, but it’s going to cost you up front. Note that this average cost only applies to basements that are already finished. Finishing a basement from scratch will cost you anywhere from $6,500 to $18,500, with an average cost around $15,000.
  • Exterior – Average Cost: $5,000 to $15,000
    It pays to invest in curb appeal, but of course, it also costs a fair deal of money. Need a roof replacement, too? Add on another $7,800 or so.

Additional costs

You might not need to worry about these home renovation costs, but if you do, here’s the range you’ll want to consider:

    • Removing walls: $300 to $10,000 (you’ll spend more depending on how many walls you’re removing and whether they’re load bearing or not)
    • Electrical rewiring: $3,000 to $20,000
    • New plumbing: $400 to $1,900

    Don’t forget the wiggle room! You’ll want to add on about 20% for incidental costs and overages.

    Also worth noting is that, across the board, labor is almost always going to be your biggest price factor (in a bathroom renovation, for example, it accounts for as much as 65% of what you spend). The more that you can take on yourself, the less you’re going to spend.

    The Value of a Professional Opinion

    The best way to estimate home renovation costs is to talk to someone who does it regularly, such as a general contractor or an interior designer. It’s these pros’ jobs to provide reliable estimates about what a renovation will cost, and their experience is incredibly valuable.

    Planning on hiring a contractor or designer anyway? Get scope and cost estimates from at least three different providers. Home remodeling and renovations is a competitive industry, and you may be able to cut your costs dramatically if you shop around. On the other hand, if you’re planning a DIY renovation, make sure to identify what parts of the project will require professional assistance (for example, electrical work) and what you’ll be able to save on by doing yourself.