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How do I budget for a kitchen renovation?

Statistics prove it – remodeling your kitchen will improve the overall value of your home and improve marketability. But how much should you spend?

As a general rule, your kitchen renovation should not exceed 20% of the value of your home if you plan on selling within five years. If your home value is $150,000, your renovation budget would be $30,000, if your home value is $300,000 your renovation budget would be $60,000, and so on. This number can be higher if you plan on living in your home and want to enjoy a fabulous new kitchen for yourself. If you are not renovating for a speedy return on investment and can afford it, why not enhance your home with the kitchen of your dreams? But for most people, cost and value are important factors.

National Kitchen and Bath, Zillow, and HGTV are all reliable renovation sources with regard to costs and budgeting. It is important to know how your costs should break down and we have done the research for you. These numbers will work as a general rule of thumb:

Cabinets and countertops – 40%

Appliances – 15%

Lighting – 5%

Flooring – 5%

Paint and fixtures – 5%

Construction costs including tiling, installations, windows, and labor – 30%

With these numbers in mind, you are going to encounter unexpected surprises in your renovation such as out of date wiring, rotten wood, a hidden village of varmints, or other issues. In your plan, it is advisable that you count on an overall 20% of your budget to handle unanticipated issues. You do not want to be in a situation where you cannot afford to finish your project or are forced to scrimp on other materials and labor.

Lastly, make sure you have planned what you want thoroughly and then STICK WITH THE PLAN. The single fastest way to exceed your budget is to throw in last minutes changes or additions. Not only will the materials add on to your expenses, those additions will cost you significant labor costs. You contractor has made plans too, and if you are throwing changes and updates at him or her, you are affecting their schedules and that does not come cheap.

Jeni C. Powell is a freelance writer who specializes in blog posts, website content, summary and analysis, and editing. Her industry related strengths include Marketing, Education, Home Living, Construction, Legal, and Parenting. Please visit her website at

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