If you ask anyone who has renovated before, they’ll almost always say, “We spent more than we expected.” That’s why a contingency budget of 10–20% on top of your planned renovation cost is usually recommended. For older homes, or projects involving structural changes, closer to 20% is safer.
Why so high? Because once you open up walls and floors, surprises appear – old wiring, hidden water damage, weak plumbing, uneven floors, or previous “jugaad” fixes that now need proper repair. You also might decide mid-way to upgrade a few things: slightly better tiles, a nicer countertop, extra lights. Individually, these don’t feel huge, but they add up.
If you’ve calculated that your renovation will cost $10,000, try to be mentally and financially ready for $11,000–$12,000. If you can’t stretch that far, adjust the initial scope now, not when you’re stuck with half-finished work.
Having a contingency isn’t pessimistic; it’s realistic. And if you’re lucky enough not to use all of it, great – you can keep the extra money or put it into smaller decor upgrades at the end.
