How to Budget for a Kitchen Remodel

A kitchen remodel is one of the best investments you can make in your home, but creating a realistic budget is essential to ensuring a smooth, stress-free process. Without clear planning, it’s easy to overspend, underestimate costs, or run into surprises along the way.

At Lincorp Borchert, we believe in transparency and education. Our goal is to help you understand where your money goes, how to prioritize your spending, and what you can expect from a professional remodeling experience.

This guide will walk you through every step of budgeting for your Southeast Michigan kitchen remodel so you can feel confident about your investment.

Why a Clear Budget Matters

A kitchen remodel is about more than aesthetics — it’s about functionality, quality, and long-term value. A clear budget helps you:

Avoid unexpected expenses or mid-project stress
Prioritize the features that matter most to you
Understand the difference between “nice-to-have” and “must-have” upgrades
Make informed decisions as the project evolves

When you know your numbers from the start, you’re free to focus on design choices, not financial surprises.

Factors That Affect Kitchen Remodeling Costs

There’s no one-size-fits-all price for a kitchen remodel because every home and project is unique. Here are the key factors that influence costs:

1. Scope of Work

Are you simply updating finishes (cabinets, counters, flooring) or moving walls, plumbing, and electrical? Full-scale renovations typically cost more due to labor and permit requirements.

2. Kitchen Size

Larger kitchens require more materials, cabinetry, and flooring, which increases overall costs.

3. Material Choices

Quartz countertops, custom cabinetry, and high-end fixtures cost more than entry-level options. Your finish selections have a big impact on the bottom line.

4. Appliances

Choosing professional-grade appliances adds luxury but also increases cost.

5. Structural & Electrical Changes

Older Michigan homes often need updates behind the walls. Replacing wiring, plumbing, or leveling floors can add to the budget but improves safety and functionality.

Setting a Realistic Kitchen Remodeling Budget

A common rule of thumb is to spend 10–15% of your home’s value on a kitchen remodel. For example, if your home is worth $400,000, your kitchen remodel budget might range from $40,000–$60,000 depending on your goals.

Budget Breakdown (Typical Percentages)

Here’s how remodeling budgets are often distributed:

Category	% of Total Budget
Cabinets	30–40%
Countertops	10–15%
Appliances	10–15%
Flooring	10%
Lighting & Electrical	5–10%
Plumbing	5–10%
Backsplash & Tile	5%
Labor & Installation	20–35%

These percentages vary based on your design and priorities, but they provide a good starting point for planning.

Tips for Staying on Budget

Prioritize Your Must-Haves

Identify the features that matter most to you, like a large island, professional appliances, or custom storage. These priorities will help guide decisions when trade-offs are necessary.

Plan for the Unexpected

Even well-maintained homes can reveal surprises behind the walls. Include a 10–15% contingency fund in your budget to cover unexpected costs without stress.

Choose Value, Not Just Price

High-quality materials and skilled craftsmanship may cost more upfront but save you from repairs, replacements, and frustration later.

Work With a Design-Build Team

A design-build approach gives you a clear budget from day one because the same team that designs your kitchen also manages construction. There are fewer surprises and more accountability.

Avoid Scope Creep

Changing your mind mid-project adds cost and delays. Finalize your design, materials, and layout during the planning phase to stay on schedule and on budget.

Financing Your Kitchen Remodel

Many homeowners use a combination of savings, home equity loans, or financing plans to fund their remodel. Here are a few options:

Home Equity Loans or Lines of Credit: Great for larger renovations with lower interest rates.
Cash-Out Refinancing: Reinvest equity into your home.
In-House Financing Plans: Many remodeling companies, including Lincorp Borchert, can help explore flexible options.

Budgeting for Long-Term Value

A well-designed kitchen remodel should last 15–20 years or more, which means your investment pays off in daily enjoyment and resale value. Features like quartz countertops, hardwood or LVP flooring, and timeless cabinetry styles ensure your remodel feels fresh for decades.

Think of your kitchen remodel as more than a cosmetic project — it’s a functional upgrade that enhances your home’s comfort, efficiency, and value.

Mistakes to Avoid When Budgeting

Starting Without a Plan – Guessing costs leads to unpleasant surprises.
Focusing Only on Price – The cheapest option isn’t always the best value.
Forgetting Permits & Inspections – These are essential for safety and resale.
Skipping the Contingency Fund – Always plan for unexpected issues.
Not Hiring Professionals – Mistakes from DIY or inexperienced contractors can cost more to fix later.