Calculating home renovation cost is important.
It is because it transparently gives you an estimate of expenses.
This means you can plan budgeting accordingly that goes into the area of your home renovation.
Components of home renovation include;
- Structural changes
- Electrical and plumbing
- Flooring and walls
- Kitchens and bathrooms
- Windows and doors
- Lighting and fixtures
- Home decoration
All these areas can cost you differ because of fixed and variable labour and material costs.
Understanding Labor vs Material Costs
Labor Cost
Labor costs cover the work performed by skilled professionals and laborers involved in your renovation project. Labor can range from 30% to 50% of the total project cost.
Material Cost
Material costs include all the physical items required for the project. Materials often account for 50% to 70% of the total cost.
| Project Type | Labor Cost | Material Cost |
| Kitchen | 30-50% | 50-70% |
| Bathroom | 30-50% | 50-70% |
| Basement | 40-60% | 40-60% |
Due to some hidden cost, you total project cost can also be fluctuate because of;
- Discovering structural issues during renovation
- Upgrading to meet building codes in older homes
- Finding temporary housing during the renovation
- Increased utility expenses during construction
Formula To Calculate Home Renovation Areas
To calculate the total cost for renovating the kitchen, bathroom, and basement, you can use the following formula:
Kitchen Renovation
Labor Cost for Kitchen = (Labor Percentage for Kitchen) × (Total Cost of Kitchen)
Material Cost for Kitchen = (Material Percentage for Kitchen) × (Total Cost of Kitchen)
For example;
Total Cost = $15,000
Labor = 40%, Material = 60%
Kitchen Labor Cost = $15,000 × 0.40 = $6,000
Kitchen Material Cost = $15,000 × 0.60 = $9,000
Bathroom Renovation
Labor Cost for Bathroom = (Labor Percentage for Bathroom) × (Total Cost of Bathroom)
Material Cost for Bathroom = (Material Percentage for Bathroom) × (Total Cost of Bathroom)
For example;
Total Cost = $8,000
Labor = 45%, Material = 55%
Bathroom Labor Cost = $8,000 × 0.45 = $3,600
Bathroom Material Cost = $8,000 × 0.55 = $4,400
Basement Renovation
Labor Cost for Basement = (Labor Percentage for Basement) × (Total Cost of Basement)
Material Cost for Basement = (Material Percentage for Basement) × (Total Cost of Basement)
For example;
Total Cost = $20,000
Labor = 50%, Material = 50%
Basement Labor Cost = $20,000 × 0.50 = $10,000
Basement Material Cost = $20,000 × 0.50 = $10,000
Does Adding Home Decoration Items Fluctuate Project Cost?
Yes, adding home decoration items can fluctuate the overall project cost, but the impact will depend on the types of items.
For example, adding a wall clock as a decorative piece may cost you lower compared to adding crystal wall art painting because of the selling price.
Tips To Control Decoration Costs
Set a Separate Budget: Allocate a specific budget for decoration items apart from the renovation costs to avoid overspending.
Prioritize Key Pieces: Focus your budget on a few key decorative elements that can elevate the space.
DIY Options: Consider DIY decoration projects to keep costs low, like painting your own walls or crafting personalized pieces.
Final Thoughts
Home renovation can take longer time than expected because of the involvement of various work and their respective completion time.
Planning in time about the expenses and time can help you manage cash flow and improvement areas.
You can follow the above guide for helping in your project in a little way. That’s all in this blog. Thanks for reading.
About Author
Daniel is a senior copywriter and works for The Next Tech Community. He wrote hundreds of articles and blogs related tips and guides related to businesses such as walmart pharmacy to help people learn.