How to Plan a Kitchen Remodel Budget

What you need

A notebook or spreadsheet, the room's measurements, supplier quotes for cabinets and worktops, list prices for the appliances you want, a written quote for labour, and your local tax rate. Collect the quotes before you set the budget — a budget built without them is a guess.

Step 1 — List the categories

Write down every category: cabinets, worktops, appliances, flooring, plumbing, electrics, labour and anything else. A category you forget is a cost you did not budget for.

Step 2 — Price each category

Get real prices: supplier quotes for cabinets and worktops, list prices for appliances, and a written quote for labour. Never guess a price and never use a price from the internet — prices vary by place and by year. Enter your own figures.

Step 3 — Add a contingency

Add 10–20% on top of the subtotal. Kitchens hide surprises — old wiring, uneven walls, plumbing in the wrong place — and the contingency is what pays for them. Do not cut the contingency to make the budget fit.

Step 4 — Add tax

In this example, tax is charged on the subtotal plus the contingency. Rules differ by place — in some places tax applies only to materials, not labour — so enter your local rate and check what it covers. The kitchen remodel calculator does the contingency and tax for you, in the right order.

Step 5 — Compare with your budget

Put the estimate next to what you can spend. If it is over, cut scope — cheaper finishes, fewer changes to the layout — rather than cutting the contingency. Use the budget calculator to see what is left and how much of the budget is used.

Worked example

Cabinets $8,000 + worktops $3,000 + appliances $4,000 + flooring $2,000 + plumbing $1,500 + electrics $1,200 + labour $6,000 + other $500 = $26,200. Contingency 10% = $2,620. Tax 8% on $28,820 = $2,305.60. Total = $31,125.60.

Common mistakes

• No contingency. The most expensive mistake in any remodel. 10–20% is not optional.
• Forgetting tax. Tax on a $30,000 kitchen is thousands — budget for it.
• Guessing prices. Get quotes. A budget built on guesses is a guess.

Safety

A kitchen remodel touches gas, electrics and water. Never do gas or electrical work yourself unless you are qualified — in most places it must be done by a licensed professional, and it must be checked before the kitchen is used. Find out whether your project needs a permit before work starts, and keep the work area clear of dust and trip hazards while the old kitchen is out.

When to hire a professional

Hire a kitchen designer or contractor when the layout changes, when plumbing, gas or electrics move, or when a wall comes out. A professional quote also anchors the budget: if your estimate and the quotes disagree by a lot, the quotes are usually right. If you are budgeting a bathroom as well, our guide to planning a bathroom remodel budget uses the same method.

Frequently asked questions

• Do I need a permit for a kitchen remodel? It depends on the scope. Cosmetic changes — new cabinets and worktops in the same layout — usually need none. Moving plumbing or electrics, or removing a wall, usually does. Check with your local authority before work starts.
• How do I compare two contractor quotes? Give every contractor the same scope and compare what is included, not just the total. Our guide to comparing contractor quotes shows what to check line by line.
• Should I buy appliances before the cabinets? Choose them early and measure them first. Cabinets are built around the appliances, so the sizes must be fixed before the cabinets are ordered — a fridge that does not fit is an expensive surprise.
• How do I track spending during the remodel? Log every invoice against the same categories you budgeted, and compare the running total with the budget weekly. The budget calculator shows what is left and how much of the budget is used.

Try these calculators

• Kitchen Remodel Calculator — the full kitchen breakdown.
• Home Improvement Budget Calculator — budget versus estimate.
• Contractor Profit Calculator — markup versus margin, explained.