What Percentage Of Home Value Should Be Spent On Kitchen Remodel?

When it comes to remodeling your kitchen, finding the right balance between cost and value is essential. After all, you want to make sure you’re getting a return on your investment while also creating a space that you’ll love. But what percentage of your home value should you actually spend on a kitchen remodel? This question has been debated by homeowners and experts alike, with various opinions and recommendations. In this article, we’ll explore the factors to consider and provide some insight into finding the sweet spot for your kitchen remodeling budget.

Factors to Consider

Current Market Value

When deciding how much to spend on a kitchen remodel, one of the most important factors to consider is the current market value of your home. The value of your home will play a significant role in determining how much you should invest in your kitchen renovation. If your home is already at the top end of the market value for your neighborhood, it may not be wise to overspend on your kitchen remodel. On the other hand, if your home has room for improvement in terms of its value compared to similar homes in your area, you may want to invest more in your kitchen to help increase its overall value.

Scope of the Remodel

Another factor to consider is the scope of your kitchen remodel. Are you planning on making minor updates and refreshing the space, or are you looking to completely gut your kitchen and start from scratch? The extent of your remodel will influence how much you should budget for the project. A minor update might only require a smaller percentage of your home’s value, while a complete kitchen overhaul may warrant a larger investment.

Neighborhood Comparisons

Comparing your home to others in your neighborhood is also important when determining how much to spend on your kitchen remodel. You don’t want your kitchen to be significantly less or more expensive than other kitchens in your area. If the majority of homes in your neighborhood have relatively modest kitchens, it may not make sense to invest in high-end appliances and finishes. However, if many of the homes in your area have updated, upscale kitchens, you may want to invest more to ensure your kitchen is on par with the local market.

General Recommendations

National Averages

National averages can provide a helpful benchmark when determining how much to spend on a kitchen remodel. According to the National Kitchen and Bath Association (NKBA), homeowners typically spend 10-25% of the home’s value on a kitchen remodel. This range can vary based on the factors mentioned previously, such as the current market value and neighborhood comparisons. It’s important to note that these are general recommendations and may not always be the best fit for every homeowner.

Budgeting Guidelines

Setting a budget is essential when planning a kitchen remodel. To establish a budget, start by determining the overall value of your home and then calculate the percentage you’re comfortable spending on the project. This will help you prioritize your renovation needs and allocate funds accordingly. Keep in mind that unforeseen expenses and changes in scope can occur during a remodel, so it’s wise to set aside a contingency fund of about 10-20% of your total budget to accommodate these potential costs.

What Percentage Of Home Value Should Be Spent On Kitchen Remodel?

Specific Percentage Ranges

Low-End Range

For homeowners looking to make relatively minor updates to their kitchen, such as replacing appliances or refreshing the countertops, a low-end range of 5-10% of the home’s value may be appropriate. This range is often suitable for homes with a lower market value or for those on a tighter budget. It allows for necessary improvements while keeping costs manageable.


A mid-range kitchen remodel typically falls within the range of 10-15% of the home’s value. This percentage allows for more significant updates, such as replacing cabinets, countertops, and flooring. It allows homeowners to achieve a noticeable transformation without breaking the bank.

High-End Range

For homeowners seeking a complete kitchen transformation with high-end finishes and top-of-the-line appliances, a high-end range of 15-25% of the home’s value may be more suitable. This range allows for extensive renovations, including custom cabinetry, luxury countertops, high-end appliances, and premium materials. It is important to note that investing in a high-end remodel may not always yield a proportionate increase in the home’s overall value, so careful consideration should be given to avoid overimproving.

Alternative Approaches

Value-based Budgeting

Another approach to determining your kitchen remodel budget is value-based budgeting. With this approach, you consider how much value you expect to gain from the remodel and allocate your budget accordingly. For example, if you plan to stay in your home for many years and derive a lot of personal enjoyment from a high-end kitchen, you may be more inclined to allocate a larger portion of your budget to achieve your desired aesthetic and functionality.

Return on Investment (ROI)

Considering the potential return on investment (ROI) of your kitchen remodel is also important. Certain upgrades, such as updating appliances and countertops, tend to have a higher ROI compared to more luxurious or personalized features. If you plan to sell your home in the near future, it’s wise to prioritize cost-effective upgrades that will appeal to potential buyers and potentially increase the resale value of your property.

What Percentage Of Home Value Should Be Spent On Kitchen Remodel?

Consequences of Overspending or Underspending


One consequence of overspending on your kitchen remodel is the risk of overimproving for your neighborhood. While it’s important to have a beautiful and functional kitchen, investing too much compared to the value of your home or the surrounding area may not be a wise financial decision. It can make it challenging to recoup your investment when it comes time to sell.


Underspending on your kitchen remodel can also have consequences. If your kitchen is outdated or in poor condition, it may make your home less marketable. Buyers often consider the kitchen a crucial area when making purchasing decisions, so neglecting to invest in necessary upgrades can hinder your ability to sell your home and potentially lower its overall value.

Satisfaction vs. Resale Value

Balancing your personal satisfaction with the potential resale value is key. While you want to create a kitchen that meets your needs and preferences, it’s essential to consider how your choices will be perceived by future buyers. A well-designed, functional kitchen can increase your satisfaction while still appealing to a broad range of potential buyers.

Strategies for Cost Savings

Prioritizing Essential Upgrades

One strategy for cost savings is to prioritize essential upgrades and delay or forego non-essential ones. Assess the condition and functionality of your existing kitchen to determine which areas truly need improvement. Focus on necessary upgrades, such as replacing worn-out appliances or enhancing storage space, before considering more cosmetic changes.

DIY vs. Hiring Professionals

Deciding whether to tackle certain aspects of the remodel yourself or hire professionals can also impact your budget. DIY projects can help save money, especially if you have the necessary skills and experience. However, it’s essential to accurately assess your capabilities and consider the potential costs and risks of mistakes. Hiring professionals can ensure the job is done correctly and efficiently, but it may come at a higher cost.

Comparing Supplier Quotes

Obtaining quotes from multiple suppliers can also lead to cost savings. Prices for materials, appliances, and fixtures can vary significantly, so it’s wise to shop around and compare prices. Consider seeking recommendations from trusted sources and read reviews to ensure you’re choosing reputable suppliers.

Buying Discounted Materials

Another cost-saving strategy is to look for discounted or clearance materials. Many stores offer discounts on discontinued or overstocked items, which can help you save money on finishes, fixtures, and even high-end appliances. However, be sure to carefully inspect the materials and ensure they meet your quality standards before making a purchase.

Value-Adding Kitchen Upgrades

Quality Cabinets and Countertops

Investing in quality cabinets and countertops can significantly increase the value of your kitchen. These upgrades not only improve functionality but also provide an aesthetic appeal that can attract potential buyers. Look for durable materials such as hardwood cabinets and stone countertops that will stand the test of time.

Appliances and Fixtures

Upgrading your appliances and fixtures can have a significant impact on the functionality and appearance of your kitchen. Energy-efficient appliances are not only environmentally friendly but can also save you money on utility bills. Opt for high-quality fixtures that not only enhance the overall design but also improve functionality and durability.

Lighting and Ventilation

Good lighting and ventilation are essential aspects of a well-designed kitchen. Consider installing energy-efficient lighting fixtures that provide ample task lighting and pleasant ambient lighting. Adequate ventilation, such as a range hood, can help remove cooking smells and moisture, improving the air quality in your kitchen.

Flooring and Backsplash

The choice of flooring and backsplash materials can greatly impact the overall look and feel of your kitchen. Durable and easy-to-maintain flooring options, such as hardwood or ceramic tile, are popular choices. A visually appealing backsplash can add personality and character to your kitchen while protecting the walls from splatters and stains.

Functional Layout

A well-planned and functional layout is crucial for a successful kitchen remodel. Consider the workflow and ease of use when designing your new kitchen. Optimize storage space, ensure efficient work areas, and create a seamless flow between different zones, such as the cooking, prep, and dining areas.

Potential Financing Options

Cash Savings

Paying for your kitchen remodel with cash savings is often the most straightforward approach. It allows you to avoid debt and interest payments. However, this might not be feasible for everyone, especially for larger-scale remodels.

Personal Loans

A personal loan can provide a source of financing for your kitchen remodel. These loans are typically unsecured and can be obtained from banks, credit unions, or online lenders. Interest rates and terms may vary, so it’s important to shop around and compare offers to get the best deal.

Home Equity Loans

Home equity loans, also known as second mortgages, allow homeowners to borrow against the equity in their homes. The interest rates on these loans are often lower than personal loans because they are secured by your property. However, keep in mind that failure to repay the loan could result in foreclosure.

Credit Cards

Credit cards can be a convenient financing option for smaller kitchen remodels. They offer flexibility and rewards, but they often come with higher interest rates compared to other financing options. If you choose to use credit cards, be sure to have a plan to pay off the balance quickly to avoid accumulating excessive interest charges.

Local Factors to Consider

Regional Cost of Living

The regional cost of living is an essential factor to consider when determining how much to spend on a kitchen remodel. Costs for materials, labor, and professional services can vary significantly depending on your location. Research the average costs in your area to get a better sense of what you can expect to spend on your kitchen remodel.

Real Estate Market

The state of the real estate market in your area can also influence your kitchen remodel budget. If you’re in a seller’s market, where demand exceeds supply, investing more in your kitchen may help your home stand out and attract potential buyers. In a buyer’s market, where supply exceeds demand, it may be more challenging to recoup your investment through a higher sale price.

Resale Data

Analyzing local resale data can provide valuable insights when determining how much to spend on your kitchen remodel. Look at recent sales of homes similar to yours in your area and note the price difference between homes with updated kitchens and those without. This data can give you an indication of how much value a kitchen remodel may add to your home.

Getting Professional Advice

Consulting a Realtor

If you’re unsure about how much to spend on your kitchen remodel, consider consulting a realtor. Realtors have extensive knowledge of the local market and can provide guidance on what upgrades are worth investing in based on the specific characteristics of your home and neighborhood. They can help you strike a balance between your budget and potential resale value.

Hiring a Certified Kitchen Designer

A certified kitchen designer can be a valuable resource when planning your kitchen remodel. They can help you maximize the functionality, aesthetics, and value of your space. These professionals have the expertise to provide design recommendations, suggest cost-effective alternatives, and work within your budget to achieve your goals.

Working with a Contractor

If your kitchen remodel involves significant structural changes or you’re not confident in your ability to tackle the project yourself, hiring a contractor is a wise choice. A reputable contractor can ensure that the work is completed to code, manage the project timeline and budget, and hire skilled tradespeople. Get multiple quotes, check references, and review past projects to find a contractor who is the right fit for your needs.

In conclusion, determining how much to spend on a kitchen remodel involves considering factors such as the current market value, scope of the remodel, and neighborhood comparisons. It’s important to set a budget based on national averages and budgeting guidelines while also taking into account the specific percentage ranges that align with your goals. Alternative approaches, such as value-based budgeting and ROI considerations, can help guide your decision-making process. Understanding the consequences of overspending or underspending, and implementing cost-saving strategies can ensure a successful and financially prudent kitchen remodel. Finally, local factors, potential financing options, and seeking professional advice can further assist you in making informed decisions for your kitchen renovation.