Kitchen renovation budgets: Hidden costs and other planning tips for homeowners
Kitchen renovations have a reputation for blowing up budgets, and after 40 years in the construction industry, I can tell you why: most homeowners wait way too long to figure out what things really cost.
The problem isn't just that kitchens are inherently expensive (though they are).
The problem is that kitchens are complicated, and most homeowners don't think through all the pieces until they're in the middle of the project and you’re stuck making rushed decisions instead of smart decisions.
But here's the good news: if you know what to plan for, you can avoid most of the budget surprises that catch other homeowners off guard.
In this guide, I'll walk you through the budget categories and hidden costs I walk my clients through with almost every project. Get familiar with these now and you'll be ahead of 90% of the people who dive into a kitchen renovation — and much more likely to come out of your reno on budget.
Start figuring out your kitchen renovation budget early.
In my experience, clients start their projects with a high-level budget in mind that is usually about half of what it will actually cost. Having a high-level number is a good starting point… but it’s only the start.
The earlier you can start to break out how much you want to spend on things like appliances, flooring, and cabinets, the earlier you can start to research and get a sense of what things really cost.
It’s more work upfront, but it also means you’ll be prepared for surprises down the road.
Common cost categories you should budget for
So how do you break things down? Here are the big categories (which mostly line up with your kitchen renovation timeline phases):
Removal / demo
Disposal
Electrical
Plumbing
Drywall, finishing, painting
Flooring
Cabinets
Countertops
Backsplash
Final details: appliance installation, touch-ups, clean-up, etc.
For all of these, plan for both materials and labour. And keep in mind: in most of these categories, labour is the bigger number — not the materials.
Hiring a trade? Budget for these three things.
Speaking of labour, for every trade (electrical, plumbing, painting, cabinets, etc.) you need to consider:
Prep and rough-in — Bringing wires or pipes to where they need to be, prepping surfaces, etc.
Materials & fixtures themselves — faucets, hood vents, tile, flooring, etc.
Fitting and installation — connecting everything together and putting it in place
Plan for the hidden costs
Inside those overall categories, here are a few common kitchen renovation costs that catch my clients by surprise all the time:
“Behind the wall” surprises
The biggest unknown of your renovation budget is what you’ll find behind the walls. This is why your contingency fund is important (see further down this list post for more on contingencies). I cover some of the most common surprises here, including plumbing and outdated wiring.
Electrical upgrades
If you’re upgrading your appliances or adding new ones, pay attention to how much energy they’ll require. If you need to upgrade your panel or add extra capacity, that can be a significant hit to your budget.
HVAC and ducting
If you’re upgrading your hood vent or moving it, you may need new ducting (modern hood vents require 8-inch pipes while older homes usually have 6-inch pipes). Most electricians and plumbers won’t touch this, so you’ll need an HVAC expert.
Permits and inspections
Even small renovations can involve red tape. Depending on your local bylaws and the size of your renovation, you may need to plan for:
Building permit fees
Electrical / plumbing permits
Drawing approvals
Re-inspection fees if something fails
A good contractor or tradesperson is a great resource here. Talk to them early and give details about the kinds of changes you want to make, and they can tell you what your local requirements are. (Check out this article on how to find the right contractor, and this one on hiring a great tradesperson.)
Insurance
Depending on the size of your project, insurance might also be something you need to look into. This can include updates to your own home insurance policy, builder’s risk insurance, or additional liability if you’re hiring individual trades.
Design costs
Depending on the size of your renovation, you’ll likely end up working with someone to help you develop drawings and design plans. This can include:
A drafting or building designer, an architect, or an interior designer
Drafting or cabinet shop drawings
3D renderings (I recommend ONLY hiring designers and architects who produce 3D drawings!)
Temporary kitchen / living expenses
How will you cook, eat, and function in your home when your kitchen is out of commission? It’s doable, but it takes planning. Check out this article on setting up a temporary kitchen to make sure you’ve got this covered.
Lead time issues
Backorders, delays, or out-of-stock materials are common in a kitchen renovation project. These kinds of delays can be costly because they drive up your labour costs.
The solution: order as much as you can in advance. And that means you’ll need to think about…
Storage
If you’re ordering your appliances, materials, and fixtures in advance (which I recommend you do!) you’ll need a place to keep them. If you don’t have space in your garage or elsewhere on the property, you may need storage. Storage is also important for anything you need to move OUT of the house once your renovation is underway.
Cleanup and disposal
This isn’t limited to the demo part of your project. Every time somebody comes in to work on your house, they’ll generate trash… and they don’t always clean up after themselves. Have a plan for a garbage bin in your front driveway, or a weekly garbage dump run.
Washroom facility for trades
Will the building crew use the facilities in your home? Will they even be available? If not, you’ll need to rent a portable toilet.
Scope creep
“While we’re at it, can we just….” is the death knell of any renovation budget — and I hear it on almost every project I do. Work through this 5-minute renovation planning exercise as soon as you can. It’ll help you get clear on what your reno will cover… and just as importantly, where it will stop.
Have a solid contingency fund
A contingency budget is a separate pot of cash that you have set aside to cover any unexpected costs that might come up during your reno. This sits outside of your regular budget and is your “break glass in case of emergency” fund.
This is HUGE for kitchen renos, because there are so many moving parts and places where your costs and timelines can fluctuate. Having a solid contingency means that when things change or a surprise pops up, you have the wiggle room to address it without adding financial stress.
So what should your kitchen reno contingency be?
If you’re doing a simple “remove and replace” reno that’s just swapping things out but not changing the layout or structure — aim for 15% on top of your overall budget.
If you have a more complicated reno where you’re taking down walls, moving things around, or adding to the space — aim for 30% on top of your overall budget.
For more on the different types of renovations, take a look at this article.
Key takeaways
Kitchen renovations don't have to blow up your budget, but I can pretty much promise they will if you don't plan ahead. The biggest mistake I see homeowners make is thinking they can figure out the details as they go. By the time you're in the middle of demo, it's too late to make smart financial decisions.
Here's what actually works when you’re planning your kitchen reno budget:
Start early. The earlier you can start breaking your numbers down into specific categories, the better prepared you'll be. Even rough estimates are better than no estimates.
Plan for the unexpected. Set aside at least 15% of your budget as contingency for simple renos, 30% for complex ones. You'll probably need it.
Think beyond the obvious. The biggest budget surprises aren't usually the cabinets or countertops. They're the hidden costs like disposal, permits, and electrical upgrades that homeowners don't see coming.
Know where to stop. Scope creep is the enemy of every renovation budget. Decide upfront what your project will include and what it won't. Then — and this is harder than you might think — stick to that plan.
Kitchen renovations are complicated, but they don't have to be financially stressful. Do your homework upfront, be realistic about what you can afford and how long it’ll take, and you'll be infinitely more prepared to make smart decisions when challenges come up.
