How much does it cost to remodel a home?

Remodeling your home can be exciting — a fresh kitchen, a cozy new bathroom, or an open-concept living space can completely transform how you live. But before you start picking paint colors or planning a new layout, there’s one big question on every homeowner’s mind: how much is this going to cost? 

From minor updates to full-scale renovations, the cost range can vary widely depending on the project, materials, and labor. In this post, we’ll break down the numbers, help you plan your budget, and give you tips to get the most value out of your remodel.

How much does it cost to remodel a home?

Home remodeling costs depend on several factors, including your location, labor costs, and the materials used. Generally, the national average for renovating a home is $15 to $60 per square foot. 

Home remodeling costs by project

Every home renovation is unique, and the cost can vary widely depending on the type of project you’re tackling. In this section, we’ll break down home remodeling costs by project, so you can plan your budget with confidence and know what to expect before you pick up that hammer.

Home remodel

If you’re considering a major renovation that touches multiple rooms or systems, costs can escalate quickly.

• Moderate whole-home remodel: $100,000–$250,000
• High-end whole-home remodel: $250,000+

Full gut renovation

A full gut remodel is the ultimate renovation — it involves tearing out almost everything in a space, from walls and flooring to plumbing and electrical work, and rebuilding it completely. 

This type of project is often done when updating an older home, changing the layout, or modernizing all systems.

• Cost range: $100,000–$250,000+ for a single major space (like a kitchen or bathroom), depending on size, materials, and labor.
• Whole-home gut remodel: $250,000–$500,000+ depending on the home’s size, scope, and finishes.

Kitchen renovation

Renovating your kitchen has a high return on investment, meaning that homeowners can recoup a significant portion of the money they invest in remodeling back in the form of increased home value. For example, homeowners can recoup 95% of what they pay for a minor kitchen renovation and about 50% of a major kitchen remodel. 

• Minor kitchen updates: $5,000–$15,000 (paint, hardware, backsplash, small appliances)
• Mid-range remodel: $15,000–$50,000 (new cabinets, countertops, flooring, appliances)
• High-end remodel: $50,000–$100,000+ (custom cabinetry, luxury appliances, high-end finishes)

Bathroom renovation

The average cost of a mid-range bathroom remodel is $25,251, and homeowners can get a 74% ROI. Even minor bathroom upgrades, such as replacing light fixtures, mirrors, and the flooring, can help you save money while still updating the space.

• Minor updates: $3,000–$10,000 (fixtures, vanity, paint, tile accents)
• Mid-range remodel: $10,000–$25,000 (new tub/shower, flooring, countertops, lighting)
• High-end remodel: $25,000–$50,000+ (luxury fixtures, heated floors, custom tile work)
• Bathroom addition: $55,586 for a mid-range addition

Basement renovation

Your basement remodel will be more expensive if you have to complete extensive prep work, structural repairs, or hire mold remediation specialists. 

• Minor finishing: $10,000–$20,000 (painting, flooring, basic lighting)
• Mid-range finishing: $20,000–$50,000 (full bathroom, kitchenette, built-ins)
• High-end finishing: $50,000–$100,000+ (home theater, bar, custom storage, high-end finishes)

Exterior renovation

The exterior of your home is more than just curb appeal — it’s the first line of defense against the elements and helps protect everything inside.

• Landscaping: $1,249 - $6,280
• Roof replacement: $5,000–$15,000 depending on materials
• Siding or exterior painting: $3,000–$15,000
• Windows and doors: $500–$1,500 per window; $1,000–$5,000 per door

Garage renovation

Costs can vary widely depending on whether you’re doing cosmetic updates or a full conversion. The cost for a garage door replacement is $4,513, which actually has the highest ROI of any home renovation project at 194%. It seems like such a small change, but because buyers notice curb appeal first, a new garage door can dramatically improve your home’s appearance. 

• Minor updates: $1,500–$5,000 (fresh paint, lighting, new storage solutions, epoxy flooring)
• Mid-range renovation: $5,000–$15,000 (new garage doors, insulation, electrical upgrades, built-in shelving)
• Full garage conversion: $15,000–$50,000+ (turning it into a livable space, adding plumbing or HVAC, high-end finishes)

How to finance a home remodel

Homeowners who want to finance their home remodel have several options: 

Home improvement loan

A home improvement loan is a personal loan, which typically has a fixed interest rate and equal monthly payments. You can use a personal loan for any purpose, and many people use them to finance home improvement project costs. You can apply for a personal loan at your local bank or credit union, or apply with an online lender.

In order to qualify for a home improvement loan, you typically have to have good credit, a stable work history, and a low DTI ratio. Your lender will pull your credit to determine whether you are eligible. It’s a good idea to check your credit report ahead of time to make sure there are no errors and all your accounts are in good standing.

A home improvement loan typically has a higher interest rate than a home equity loan or a home equity line of credit because it does not require collateral to secure the loan. The benefit of a home improvement loan, though, is that if you are unable to make your payments for whatever reason, your lender cannot foreclose on your home.

Home equity line of credit (HELOC)

A home equity line of credit works similarly to a credit card in that you can borrow money as needed up to a certain limit. However, it differs from a credit card because it’s a secured line of credit using your house as collateral for the loan. 

Many homeowners prefer using a HELOC as a financing tool because they can borrow money as renovations progress. Sometimes, it’s hard to gauge the exact cost of a home addition or renovation until the remodel is in progress.

Homeowners need at least 15% to 20% equity or more in their home, depending on the lender, as well as a good credit score and evidence of a stable work history. Homeowners also need to be comfortable with a long repayment period. Typically, borrowers make interest-only payments during the draw period, which lasts five to 10 years, followed by a repayment period of 10 to 20 years, although the exact terms vary by lender.

The biggest consideration when it comes to a HELOC is what happens if you’re not able to make your monthly payment. Because your home is the collateral for this line of credit, a lender can foreclose on your home if you’re unable to pay. Homeowners who are unwilling to take this risk might be a better fit for a home equity loan or a home equity investment.

Home equity loan

A home equity loan is similar to a HELOC in that your home’s equity is the collateral for the loan. However, it differs in that you get a lump sum with equal monthly payments. The benefit of that is that it’s easier to budget and manage your cash flow during a renovation. The downside is that if you’re unable to pay the loan, your lender can foreclose on your house. 

In order to qualify for a home equity loan, you’ll need 15% to 20% equity in your home (depending on the lender) as well as a good credit score and stable income.

Home equity investment

A home equity investment is a financing option for homeowners who prefer not to incur monthly payments. With an HEI, homeowners get a lump sum today in exchange for sharing a percentage of their home’s future appreciation. To qualify, you’ll need a significant percentage of equity in your home. However, unlike a home equity loan or HELOC, you do not need good credit to qualify. Additionally, income is not a factor.

Government-backed loans

There are also government-backed loans that can help you pay for your home renovation projects. One popular government-backed loan is the FHA 203(k) loan. These loans enable homebuyers to roll renovation costs and a house purchase into one loan. There are also single-family housing repair loans for eligible homeowners and VA renovation loans for veterans who meet the qualifications.

Grants

Unlike loans, grants do not have to be paid back. There are several government-sponsored grants that provide funding for home renovations. 

Each grant program has its own requirements. Many of them are designed to help low-income families, the elderly, individuals with disabilities, and veterans who may not have the necessary funds to repair their homes. Some programs require you to live in a single-family home to be eligible as well.

Though it might take time to research grants and complete the applications, it can be worth it to get financial assistance for costly repairs. However, if you need to make a timely repair, such as an air conditioning repair during the summer heat, a government grant might not be the best option, as it can take several weeks to process your application.

Frequently asked questions

How much should I budget for a home remodel?

Budgeting for a home remodel takes some planning, and costs can vary widely depending on the size of the space, the scope of work, and your location. Start by defining your goals, getting estimates, and building in a 10–20% contingency for unexpected expenses.

What is the most expensive part of remodeling a house?

Labor and materials usually make up the biggest portion of remodeling costs. Don’t forget about permits, design fees, and inspections, which may be less expensive but are still essential to a smooth renovation.

Is it cheaper to renovate or build a home?

Typically, it is less expensive to renovate an existing home than to build one from scratch. Of course, each remodeling project is unique, and sometimes unexpected costs can add up, especially when updating an older home.

Is $50,000 enough to renovate a house?

A $50,000 budget can cover updates to one or two areas of your home, like a kitchen or a basement, but it’s usually not enough for a whole-home remodel. It’s important to prioritize your projects and focus on the spaces that will give you the most value and enjoyment.

Final thoughts

Researching the cost to remodel a house ahead of time can save you time and money in the long run. Whether you want to gut your entire home or complete a mid-range bathroom renovation, it’s important to get at least three estimates from qualified contractors and create a budget before starting the remodel.

Knowing what you expect to spend can also help you decide whether to pay for your renovation costs in cash or use one of the financing methods mentioned above. 

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