Creating a Budget for your Kitchen Remodel

The first thing you want to do when considering a kitchen remodel is decide on a budget.  Here are some good rules of thumb to help you along the way.

Your overall budget should be in the range of 15% of the overall value of your home.  The good news is that according to Remodeling Magazine’s Cost to Value report, kitchen remodeling projects can have as much as a 112% return on investment.  So this is money well spent as you will most likely get it back out of your home when you go to sell. 

The average cost of a kitchen remodel is $15k on the low end and $85k for high end projects.  The average cost of a kitchen remodel is $45k.

So how do you know how much to spend on what?  Here are some guidelines to help you broken down into percentage of your overall budget:

Cabinets                                  40%

Countertops                            9%

Appliances                              10%

Lighting/Electrical                  10%

Wall Covering                         3%

Floor Covering                        8%

Labor (including plumbing)    20%

It’s also a good idea to leave in some contingency money in each category for unexpected expenses or problems.  Every remodel is different and there are some obstacles that are just unknown until you start tearing things out.  Be sure to account for things like shipping and tax as well.

Only you can decide what is most important to you.  If you have your heart set on a big industrial range, up the percentage for appliances.  If you want faux finished plaster walls, you may want to up the wall covering category.  Just make sure you decide where to lower your percentages in the other categories. 

Sticking to a budget you can afford will help keep stress levels low and ensure that your project runs as smoothly as possible.

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