Home renovation projects are very exciting. You finally have the chance to transform your home and get that space you’ve always desired. Now, one of the most important aspects of a home renovation project is knowing the total cost of your renovation project. To do that, you must establish a realistic home renovation budget before starting the renovation process.
And, since most people have a limited budget when renovating their homes, it’s important to know all the costs involved in the project. In this article, we shall discuss the two methods used to calculate the cost of home renovation projects and important guidelines that should help you set a realistic renovation budget.
Let’s delve in!
The square foot calculation method
The first way to calculate the cost of a home renovation project is by using the square footage method. This method is best suited for small-scale projects, such as painting, installing new flooring, or renovating a bathroom.
To calculate the cost of your renovation project using this method, you need to determine the total square footage of the area that will be renovated. Once you have that number, multiply it by the cost per square foot of the desired material. For example, if you want to install new hardwood floors in your home, and the total area to be covered is 500 square feet, you would need to multiply 500 by the cost per square foot of hardwood floors (which is around $8). So, the total cost of your renovation project would be $4,000.
It’s important to note that the square footage method is not always accurate, as it does not consider the specific dimensions of the space being renovated.
The unit calculation method
According to the contractors at AFS General Contracting, the second way to calculate the cost of a home renovation project is by using the unit calculation method. This method is best suited for large-scale projects, such as the kitchen or home additions.
To calculate the cost of your renovation project using this method, you need to determine the number of units that will be required for the project. For example, if you are adding an extra room to your home, you would need to determine how many windows, doors, and electrical outlets will be required for the new space. Once you have that information, you can multiply the number of units by the cost per unit.
For example, if you are adding a new room that will require two windows, two doors, and four electrical outlets, you would need to multiply that by the cost per unit. So, if the cost per unit for windows is $100, the cost per unit for doors is $200, and the cost per unit for electrical outlets is $50, the total cost of your renovation project would be $6,000.
It’s important to note that the unit calculation method is more accurate than the square footage method, as it takes into account all the specific materials required for the project.
The hourly rate method
The third way to calculate the cost of a home renovation project is by using the hourly rate method. This method is best suited for projects that are difficult to estimate, such as plumbing or electrical work.
To calculate the cost of your renovation project using this method, you need to determine the number of hours that will be required to complete the project. Once you have that information, you can multiply the number of hours by the cost per hour.
For example, if your plumbing project will take four hours to complete, and the cost per hour is $50, the total cost of your renovation project would be $200.
The lump-sum method
The fourth way to calculate the cost of a home renovation project is by using the lump sum method. This method is best suited for projects that are difficult to estimate, such as custom work.
To calculate the cost of your renovation project using this method, you need to determine the total cost of all the materials and labor required for the project. Once you have that information, you can add a markup to cover any overhead costs and profits.
For example, if the total cost of your project is $5,000, and you add a markup of 20%, the total cost of your renovation project would be $6,000.
It’s important to note that the lump sum method is more accurate than the square footage, unit calculation, or hourly rate methods, as it takes into account all the specific materials and labor required for the project.
As you can see, there are several different ways to calculate the cost of a home renovation project. The best way to calculate the cost of your project will depend on the specific details of the project.
If you’re not sure which method to use, we recommend talking to a contractor or an interior designer. They will be able to help you determine the best way to calculate the cost of your project. Besides, it’s important to understand the factors affecting home renovation costs, as this can also be a guideline.
These factors include:
The size of the project
The size of the project is one of the most important factors that will affect the cost of your renovation. You’ll need more materials and labor to complete a large project than a small one. Of course, the larger the project, the more it will cost.
The complexity of the project
The complexity of the project is another important factor that will affect the cost of your renovation. If you plan a simple project, such as painting your walls or replacing your floors, the cost will be relatively low.
However, if you’re planning a more complex project, such as adding an addition to your home, the cost will be higher. This is because complex projects require more materials and labor and are more time-consuming to complete.
The quality of the materials
The quality of the materials is another important factor that will affect the cost of your renovation. If you choose to use high-quality materials, such as hardwood floors or stone countertops, the cost of your renovation will be higher.
However, if you choose to use lower-quality materials, such as laminate floors or Formica countertops, the cost of your renovation will be lower.
The scope of the project
The scope of the project is another important factor that will affect the cost of your renovation. The scope of the project refers to the amount of work that needs to be done. For example, a kitchen renovation will usually require more work than a bathroom renovation.
