Free Home Renovation Budget Templates for Excel

Home renovation or remodeling can be an exciting process, but it can get costly, too. Planning to ensure that your bank account isn’t drained when you’re done renovating is essential. Planning requires a proper budget and a strategic approach to getting things done. This is regardless of whether you hire contractors or do the renovation yourself. A renovation budget template can thus be used to estimate the project’s cost and control and manage the expenses from start to finish.

With a budget in place, you can plan the expenses so as not to go overboard beyond what you can afford. A home renovation budget template can be a handy tool in this process. However, renovations can be stressful due to the multiple undertakings involved without proper budgeting. To help you out with this process, this article discusses the different considerations to consider when budgeting for renovation and how to create a feasible renovation budget using templates.

What is home renovation? Home renovation is an extensive process of improving your home based on needs and standards and increasing your property’s value. Renovations can include repairs, additions, or alterations to the house’s exterior and interior or creating a new space within the property. This can include electrical, plumbing, and HVAC work. Therefore, any improvement must meet industry standards and comply with building codes.

Do you know? The average cost to renovate a home. HomeAdvisor estimates the average cost of renovation of a 1,000 sq. home to be $19,000 and that of homes with square footage ranging from 3,000 – 4,000 to be $87,5000. The industry average is around $10-$60 per square foot. This cost can go up for older homes, primarily if electrical, plumbing, HVAC, and other utility works are upgraded to industry standards and building codes. When renovating a home, it is recommended that you take each room as an individual project and budget for each room separately. The average costs of renovations per room are as follows – kitchen ($4,000-$60,000), bathroom ($2,500-$25,000), and basement ($11,000-$30,000)

Spending on Home Renovation

Before creating your home renovation budget, you need to know the basics of how much it will cost to do home renovations. Ideally, your renovation budget shouldn’t exceed 10-15 percent of the home’s value. Expenditures above this percentage do not result in a proportional increase in the home’s value. 

So, it is essential to consider the value of the current condition, the cost of renovation, and the potential condition of the home after renovation. The potential value is a projection that can be estimated with the help of a professional appraiser.

Specify your budget before renovation 

Determining how you will finance the project is vital before creating the final budget. The budget ought to be within the constraints of what you can afford. So, determine if you’ll use your money/personal funds or take a loan. This determines how much money you’ve to finance the project.

Once the funds are available, part of the money should be set aside to cushion any unprecedented events. This can be 10-20% of the entire estimated budget. These contingency funds can cover costs incurred during accidents, breakages, etc. The other part of the estimated budget should then be specified as the final draft of the home renovation budget.

Home renovation is usually a significant process involving many considerations, starting from color to design layout and structural changes. Depending on the extent of the remodelling, it can take months to complete.

Below are different considerations to factor in when planning to renovate your home. In addition, planning will enable you to determine the cash flows you need for home improvement:

Identify the scope of work and timeline

Before starting the renovation, you must identify the scope of work and a timeline. It involves knowing the type of renovation, the extent, and what and how you will renovate. For instance, if you’re going to remodel the entire kitchen, you need to identify which works need to be done, whether it is the kitchen top, new cabinets, tiling, plumbing, in-built appliances, etc. Next, you will need to review each room that needs to be renovated. Record what needs to be renovated and create a list. Create a long list of everything you’d like to be worked on, as you can narrow it down later on to specific areas that require renovation.

After creating your dream renovation list, schedule a timeline for each room and the entire project. When allocating timelines, consider the tasks in the specific room. For example, note that Air Conditioning works are done first, followed by plumbing and electrical works at the end. The timeline should be realistic but flexible since you may have to change the renovation work as the project progresses.

Specify if you want to work with GC or DIY

Specify if you want to do all the renovation yourself or hire a General Contractor (GC). A GC oversees the entire project from start to finish, but this approach is expensive as they typically charge 10% of the project costs for their services. If hired, the GC will be in charge of recruiting and managing other subcontractors, including A/C contractors, drywall contractors, plumbers, electricians, painters, etc., on your behalf.

You can choose the DIY approach if you are available and have good organizational and management skills. This approach can be cumbersome but may save you the money it costs to hire a GC. Some contractors you should expect to interact with, regardless of whether you’ll be using GC or DIY, include a Tile installer, electrician, cabinet company, plumber, drywall installation/wall texturing, countertop fabricator, and painter. 

Interview contractors and get quotes

It’s necessary to interview various contractors for your project. Your home improvement decisions should be made after evaluating multiple quotes rather than relying on one quote. It’s always best to get at least two quotes from different contractors before contracting them. If the quotes have significant discrepancies, consider getting a third quote from another contractor and determine the median cost. Also, try to create a relationship with the contractor by asking them questions to determine if your personalities are compatible. Remember you’ll be working with the contractor closely, and if you can’t get along, it can hinder the project’s progress or, even worse, end in disputes.

Set a budget

Once you have an average estimate of how much it would cost to undertake the renovation plan, set the budget for the project. Go through every room you want to renovate and revise the list you created initially; eliminate or add tasks as you see fit according to the funds available. Consider all expenses, including inspection fees, contractor fees, materials (bulbs, wall outlets, door knobs, etc.), hauling, truck rental rates, etc. Also, find out which materials the contractor will provide and what you’ll be expected to provide. This will give you a general idea of how much should be allocated for different works.

Open a bank account

Opening a separate bank account for the renovation project and depositing the associated funds is advisable. Whether you’re financing the renovation yourself or through credit, this is regardless. Having a separate account for the home renovation ensures you don’t take funds from your savings. You should ensure that you’re aware of your spending by keeping the receipts. Some home renovation expenses are tax deductible.

Clean and purge the areas you want to renovate

Before you start a renovation, you need to make sure that you clean and clear the areas you want to work on. Next, remove furniture and other items in the way of renovations. This will give the workers enough space to work and avoid unnecessary accidents. Also, throw away items you don’t use or no longer need. Next, plan for the demolition phase with the contractor. This ensures that parts of the house and items that won’t be remodeled or replaced are left untouched/intact.

Creating a home renovation budget using a template requires you to consider the total cost of a project. This includes costs like materials, labour, and certain intermediary items. The expenses you incur will depend on the extent of the renovation.

Below is a guide on creating an adequate budget for your home renovation:

Prioritize remodelling needs

You need to determine the essential features because it wouldn’t be prudent to create a budget for unimportant features. First, create a list of everything you want to be included in your project, then categorize the list into wants and needs (needs take precedence over wants). Then establish the order in which you want the items to be accomplished.

For example, you can start fixing the wall while there are plumbing and electrical works that need to be done. To create a prioritized list, identify what needs to be done, what needs to be done before that, what you can compromise on, and what you are willing to overspend on. Also, identify which rooms in your home should be prioritized. Your priority list will often dictate your remodelling execution plan and items on the home renovation budget template.

Determine cost estimates

Next, go through your list and determine the cost of different items. Items to include in the budget template include labour costs, which usually constitute 20-35% of the total budget, fixtures and finishes, materials, and additional expenses. In addition, additional expenses may crop up during the renovation process, such as shipping fees of materials, hauling, taxes, permits, inspection fees, delivery and installation of application fees, rubbish removal, etc.

Lastly, include living expenses that you expect to incur during the entire renovation period. These include motel costs, costs of eating out if the kitchen won’t be functional, pet care costs, etc. You should then create a detailed list of your preferences and associated costs and present it to the contractor so you can agree on the labour costs and timeline projections.

Take bids from multiple contractors

Having established the cost of different items, you should then engage in the bidding process with different contractors and request them to provide you with detailed quotes for each aspect of the project. Consult at least three contractors. While engaging with contractors, ensure they understand your priorities, as they may not always align with theirs. Enquire and discuss additional expenses, project changes, time delays, and unforeseen complications and how they may affect your home renovation budget.

You can then receive their bids. If a bid is far below what others are projecting, turn it down as “cheap is expensive” in a renovation. Cheap services may imply poor services, which can be expensive in the long run. If your budget estimation is significantly higher than the contractors’ estimates, consider trimming your to-do list by eliminating the wants. Lastly, please select the most befitting contractor, request them to prepare a renovation plan and budget, and offer feedback to compare with your earlier estimation. Look out for discrepancies and make adjustments where necessary in your home renovation budget template. Then, create the final draft of the project budget, and work can begin after.

You can create your home renovation budget using a template. Templates will have the essential components of a home renovation budget to guide users. Our readers can download such templates from our site at no charge. The templates are pre-designed to cover different types of home renovations but can be modified to suit specific project needs. Here are the benefits of using a home renovation budget template. 

It keeps track of your budget

A template can assist you in keeping track of the project’s progress and spending. In addition, you can modify the template to include as many items as possible. This allows you to keep track of different aspects of the project in one place.

Helps track cost estimates of a single room

You can create a copy of the template for each room you want to renovate. This will allow you to assess your costs and devise a budget accordingly accurately. This is also an efficient way of tracking progress as each room is completed.

Works for the entire house

If you are undertaking multiple renovations simultaneously, using a home renovation budget template is an effective way to track the entire project. It can be used for all renovation types as it factors in renovation budget items from all rooms in a house.

Specific budgeting techniques ensure your home renovation budget promotes the project’s success. They include:

Do demolition yourself

Doing the demolition yourself costs less than if you hire someone else to do it. Also, it ensures there is no damage done to the things you want to keep. This can save you labour and replacement costs in your budget.

Choose the right people

Working with the right people can save you headaches and, even more importantly, money! Conduct interviews, assess reviews, and seek recommendations from friends and family before settling on a contractor or designer. The wrong partner may result in additional costs down the line, thus inflating your budget.

Order fixtures and finishes yourself

Shop for the fixtures and finishes yourself. This is because contractors charge an hourly rate or markup fee for this service. Thus, this is a potential cost-cutting area when renovating your home. 

Use mix material

Materials cost differently. Consider using mixing materials, i.e., expensive and affordable materials. For example, you can use hardwood in the living room and tiles in the bedrooms. This would cost less than flooring the entire house with hardwood, thus saving you money.

Be your project manager

This ensures you are aware of any cost deviations and the reason behind the deviation. Also, if additional subcontractors are needed, be sure to interview and select them yourself to ensure they are the right people for the job and won’t cost you money down the line.

Beware of the hidden costs

Various hidden costs may arise when renovating your home. It is thus best to always be prepared by including a contingency budget in your home renovation budget. Unforeseen issues include breakages, old wiring problems, or broken pipes beneath the house.

Do painting on your own

Painting costs can be eliminated from the budget if you paint the rooms yourself. Painting costs can go up to $300 per room. This is money you can save if you call your friends and family to help you out with the painting.

Communicate freely

Communication is important when creating a home renovation budget. Communicate with your contractor about your preferences, requirements, budget constraints, and timeline. This will ensure things are done on schedule, according to your standards, and within your budget.

Shop used stuff first

Consider using used or refurbished items. They are inexpensive and work just as well if in good condition. This can reduce the cost of the renovation budget with significant margins.

Combine projects of the same kind

Doing multiple similar tasks or projects at one time can reduce the cost of materials and labour. For example, if you’re doing electrical work in different rooms, consider having the electrician work on all rooms simultaneously. This can save you money as it is more cost-effective for contractors to work on one large project than multiple small projects.

Use alternatives

Consider alternative materials if they will attain almost similar results at a lower cost. For example, if you want a brick wall, but the cost is high, consider using siding instead. You can even paint it to resemble a brick wall. Consult your contractor to determine how low-cost alternatives can be utilized to attain desired results.

Set a limit

To avoid overspending on the renovation, set a budget limit and stick to it. For example, you shouldn’t spend more on a room than that room’s value as a percentage of the property’s value. For example, if the bedroom’s value is 10% of the house’s value and the house’s value is $100,000, the renovation budget of the bedroom shouldn’t exceed $10,000.

Final Thoughts

Home renovation is the process of creating a new space within your home. This can involve renovating a kitchen, bathroom, bedroom, or living room. Whatever project you choose, including the requirements needed to complete the task when planning your budget. Home renovation can result in better living conditions and increased value of the property or building.

However, if not adequately planned, it can result in a loss of money and a negative return on investment when the value of the renovation does not result in a proportional increase in the property’s value. Therefore, when renovating a home, ensure you have a realistic plan of what you want to achieve with the renovation. This way, you can mitigate the risk of investing vast amounts of money in a project that isn’t worthwhile.