How to Plan a Home Renovation Budget (and Stick to It)

Renovation budgets usually go wrong in three places: quotes that weren't comparable, payments nobody tracked, and surprises nobody planned for.

Rough costs to start with

Costs vary a lot by city and material, but as a starting point:

• Repainting a 2 BHK: ₹40,000 to ₹80,000
• Bathroom with new tiles and fittings: ₹70,000 to ₹2 lakh
• Modular kitchen: ₹1.2 lakh to ₹4 lakh
• Wardrobes: ₹1,200 to ₹2,500 per sq ft of front area
• False ceiling with lights: ₹100 to ₹200 per sq ft

Step 1: List every job by room

Kitchen, bathrooms, bedrooms, living room, balcony, and whole-house jobs like painting and electrical work. Write your own estimate next to each.

Step 2: Get three written quotes

For each job, ask at least three contractors. Make sure every quote covers the same things:

• Material brand and grade (for example, which plywood or tiles)
• Quantities and area
• What's not included: debris removal, extra electrical points, plumbing changes, transport
• Timeline and warranty

The lowest quote isn't always the best; a quote that leaves things out will cost more later.

Step 3: Keep a buffer

Hold back 10 to 15% of the budget. Old wiring, hidden leaks and uneven walls often show up only after work starts.

Step 4: Pay in stages

A common pattern: 30 to 50% advance, then a payment when material arrives, the balance after completion and a small part after a final check. Record every payment with the date and what it was for.

Step 5: Track committed vs paid

Committed cost is what you've agreed to pay; paid is what's gone out. The difference is what you still owe. Knowing both stops you from approving extras you can't afford.

Mistakes that blow budgets

1. Starting without written quotes
2. Changing designs midway
3. Paying the full amount before the work is done
4. Forgetting small items: handles, lights, curtains, cleaning

Before work starts

Get the society's written permission and working hours, protect the lift and common areas, and agree where debris will go. Take photos of existing walls, floors and plumbing; they help settle disputes about damage later. Agree with the contractor who buys which materials, because mixed buying is where most billing confusion comes from.

Our Home Renovation Budget Tracker compares three quotes per job, tracks every payment and shows how much of your buffer is left.