How to Prepare a Budget for Kitchen Renovation

Kitchens are usually the most expensive room in the house to renovate.  Replacing the main appliances like the stove, refrigerator and dishwasher can be costly.  Adding renovations to the replacements increase the overall costs of the project.  If you want to renovate your kitchen, you should prepare a budget and stick to the budget throughout the project.

1. Make a list of the things you want to renovate in the kitchen.  Title this list, “Kitchen Renovation Wants.” For instance, if you know you want to buy a new stove, write down, “Purchase a new stove.”


2. Look in your kitchen for other changes you wish to make like replacing the cabinets, putting new hardware on the cabinet doors, laying tile floor, paint the walls, paint the ceiling, add wallpaper, buy curtains or install an island.


3. Browse through kitchen renovation magazines and home improvement websites to get some ideas of what you would like to do when remodeling your kitchen.  The change can be a total overhaul or just replacing a few basic items. 


4. Find the prices of things you want completed in your kitchen.  For instance, you may know you want a new refrigerator.  You have looked at several models and compared prices.  Next to the words “Buy a New Refrigerator” on your list, add the approximate price for the refrigerator.  Do this with each item on the list.  If you get to something, like installing tile floor, which you cannot do on your own, you should contact a professional and get a quote.  Professionals can be found by searching the businesses listed on MerchantCircle.  This website will provide you with business information as well as customer reviews, so you know you are contacting a reputable company.


5. Add the costs of all the renovations you want completed including appliances you want to purchase.  This is a good place to begin preparing a budget for your kitchen renovation.


6. Determine how much you can afford to spend on renovating the kitchen.  Look at your family budget and see how much money is available after paying all the bills.  Can you afford to spend an additional $200 to $300 a week?  If so, begin setting this money aside for your kitchen renovation project.  If you can afford more or less, you will need to change the savings timeline to fit your income.


7. Stick to a reasonable budget.  If you are remodeling a kitchen, you should spend no more than 15 percent of the value of the house.  If your house is worth $150,000 then you should keep your renovations at approximately $22,500.  Renovations will increase the value of a home, but spending too much money in a kitchen renovation project may not be profitable.


8. Compare the three sets of information you have just obtained: the costs of the items or renovations you want, the amount you can afford and the 15 percent value of your house.  Do these numbers work well together?  Can you afford what you want?  Do you have enough money in your budget to renovate the kitchen you want?  Do your wants exceed the 15 percent rule?  You may need to cross off some items on your “want” list or look for appliances or services that are not so costly.  You may decide that the renovation process will take 3 to 5 years and you will only complete certain parts of the kitchen once you have saved up enough money.  This is the stage when you begin to determine the most important renovations and how soon you need them completed.