How to Create a Home Renovation Budget Step by Step

by Rafael Garcia · Published January 15, 2026 · Updated January 15, 2026

How to create an approximate renovation budget step by step

Definition. Creating an approximate renovation budget means preparing a simple document that clearly defines the works you want to carry out, with the aim of estimating costs and making it easier to request quotes from different companies.

This document does not need to reach a professional level of detail, but it should clearly describe the scope of the renovation and help you organise your ideas before contacting contractors.

Why prepare a preliminary budget before requesting quotes?

Preparing an indicative budget in advance offers several advantages:

📋 It helps companies clearly understand which works they need to price.
🧠 It allows the homeowner to better organise and define the scope of the renovation.
💰 It provides an approximate idea of the total cost before requesting formal quotes.

Although it is not possible to obtain an exact price — since factors such as supply and demand, company margins or market conditions may vary — it is perfectly feasible to calculate a realistic overall cost estimate.

Steps completed so far

Before reaching this stage, the following steps should already have been completed:

🛠️ Defining the scope of the renovation or construction works.
📝 Creating a detailed list of the tasks to be carried out.

You can review these steps in the previous article on

how to calculate the cost of a home renovation
.

Methods for preparing a renovation budget

There are several ways to create an approximate renovation budget. The most common options are outlined below.

1️⃣ Using professional budgeting software

Professional measurement and budgeting software, supported by construction price databases, provides highly accurate results. However, it requires training, time and financial investment, which is often not worthwhile for a single renovation project.

2️⃣ Requesting quotes directly from contractors

Many homeowners choose to send their requests directly to multiple companies through online platforms that connect clients with professionals.

This approach is quick and convenient, but it has a major drawback: without prior knowledge, it is difficult to properly assess and compare the quotes received.

3️⃣ Hiring an architect or quantity surveyor

Commissioning a professional to prepare the budget is the safest and most reliable option, as the document will follow professional criteria. However, it is also the most expensive alternative.

4️⃣ Preparing your own draft budget

This is often the most balanced solution if you want a realistic estimate without incurring high costs. Below we explain how to do it step by step.

Guidelines for preparing your own renovation budget

1️⃣ Define the work units

You must clearly identify each task to be contracted (demolition, tiling, installations, painting, etc.). This process is explained in detail in the

previous article
.

2️⃣ Assign a price to each unit

This is the most important step. Here is a simple and fairly reliable method:

a) Calculate material costs

Look up the prices of the materials you will need in specialised shops or online suppliers.

Example: tiling a bathroom

Removal of existing wall tiles
Dismantling sanitary fittings
Installation of new tiles
Reinstallation of existing fittings

In this case, the main material cost is the tile itself. Simply multiply the total square metres by the price per square metre.

b) Estimate labour costs

You can search for reference prices online. If no reliable data is available, a reasonable approach is to assume an hourly rate similar to your own, adjusted to a professional construction context.

c) Estimate execution time

This is often the most difficult part. To get an approximate idea, you can consult construction databases that include average execution times and productivity rates.

These figures should be used only as a reference, as they are usually based on statistical averages and may not be up to date.

d) Calculate the final result

Add together material and labour costs, then increase the total by approximately 20% to cover general expenses and contractor profit.

The final figure will give you a reasonably accurate indicative budget for your renovation.

Conclusion

Summary. Preparing an approximate renovation budget before requesting formal quotes will help you better understand costs, compare offers effectively and make more informed decisions.

Article reviewed by the Vilssa editorial team · Construction and renovations.

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