How to use the home renovation budget planner
- Optionally enter the total budget available, and set a contingency percent as a cushion for surprises.
- List each budget item with its estimate. The amounts shown are examples, so replace them with your quotes.
- As work is finished, enter the actual cost for that item.
- Read the planned total, the projected total with contingency, how far actual costs have moved from the estimates, and whether you are under or over the budget you entered.
Formula
Estimated total = sum of all estimates
Contingency = estimated total x contingency percent
Projected total = actual cost where entered + estimate where not
Contingency left = estimates of unfinished items x contingency percent
Projected with contingency = projected total + contingency left
Headroom = budget available - projected with contingency
Contingency is applied only to items without an actual cost, because finished items no longer carry the unknown.
A kitchen refresh
The four example items have estimates of $2,500, $14,000, $5,500 and $1,800, which total $23,800. A 10% contingency adds $2,380, so the planned total is $26,180.
Demolition is finished and cost $2,800, which is $300 more than its estimate. The projected total uses that $2,800 plus the three estimates still open ($21,300), giving $24,100. The contingency on the open items is $2,130, so the projected total with contingency is $26,230. With a budget of $30,000, that leaves $3,770 of headroom.
Why track actual costs against estimates
A budget is a set of guesses until the invoices arrive. Entering actual costs as you go turns the guess into a running total, and the variance on finished items shows whether your estimates are running low or high. If the finished items are all over, the remaining ones may be too.
The contingency percent is yours to set. A higher figure suits work with more unknowns, such as opening up old walls. The 10% shown is an example, not a recommendation.
What is not in the totals
The planner adds up the numbers you give it. It does not know local prices, permits, taxes, financing costs, temporary housing or how long the project will take, and it is not a contractor quote. For individual materials, the paint calculator, the flooring calculator and the drywall calculator estimate quantities, and the house flip calculator covers a purchase and resale.
Assumptions and limits
- Amounts and the contingency percent are examples or numbers you enter.
- Contingency is applied to the estimates of items without an actual cost.
- Money is added in dollars and rounded to the cent.
- Permits, taxes, financing and delays are not modeled.
Frequently asked questions
How much contingency should a renovation budget have?
There is no single right figure. The 10% in the form is an example. Use more for older buildings or work with many unknowns, and less for simple, fixed-price jobs.
Why does contingency drop when I enter actual costs?
Once an item is finished its cost is known, so it no longer needs a cushion. Contingency stays on the items still to be done.
What does the headroom line mean?
It is your total budget minus the projected total with contingency. Positive means you are under budget, and negative means over.
Can I print the budget for a contractor meeting?
Yes. Use Print or the PDF button to get a copy of the items, the totals and the assumptions.