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The Cost of Remodeling a Kitchen

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Your kitchen is truly the center of your home. Not only is it vital to preparing dinner for the family, but it’s also where the kids do homework and where your friends gather on the weekends.

But did you know that the kitchen is also one of the most important selling-points in your home? When buyers are looking at a new home, the two rooms at the top of their priority list are the kitchen and the master bathroom.

Because of this, it’s no surprise that remodeling your kitchen is a popular home improvement project, and could add a lot of value to your home. But how much is it going to cost? 

What does a kitchen remodel cost?

According to HomeAdvisor, on average most homeowners tend to spend between $13,342 and $37,702 on a kitchen remodel. Exact expenses depend on the size of the space, the finishes you want, type of appliances and more. That’s no small investment, especially for one room. While costs vary considerably depending on what part of the country you’re in and the size of the room, kitchen remodels are generally costly endeavors. Those costs will also likely differ depending on if you’re considering a mid-range or high-end remodel.

Learn more about our no-fee, fixed-rate personal loans.

Setting a budget

Because kitchen remodeling is a sizable investment, it’s important to make a budget before starting the project. Also, keep in mind the current value of your home and how much the remodel could boost its overall value.

Start planning your budget by pricing out each element of your kitchen remodeling costs. A good rule of thumb is to set aside at least 25% of your overall budget for labor, in addition to the contractor’s hiring fee. This number can be adjusted if you plan on doing more of the heavy lifting yourself (we love a DIY project!). Just be sure you know what you’re doing. Unless you have the expertise, leave the plumbing and electrical work to licensed professionals.

Another important thing to do when setting the budget is to make a list of priorities. For instance, if your floors are in good shape, changing the countertops and updating the appliances could be enough to give the kitchen a facelift. Even simple things like updating the faucet or adding a backsplash could make a big difference.

When setting a budget, you may want to consider the value of your home and that of the other houses in your neighborhood. This can help determine if the remodel will pay off. A $90,000 renovation to modernize a kitchen in a $500,000 home may not pay off because you might not recoup the cost of that investment when you sell the house.


With a personal loan, you receive your funds in a lump sum, which you can then use to pay for materials and contractors.


How to finance your dream kitchen renovation

Just because a kitchen remodel can be expensive doesn’t mean it’s impossible. If the cost of your dream remodel is a little more than what you anticipated or have saved up, you could consider financing.

There are a few ways to finance your kitchen remodel:

Personal Loan

personal loan for home renovation is one way to help finance a kitchen remodel. With a personal loan, you receive your funds in a lump sum, which you can then use to pay for materials and contractors. If you have good credit, personal loans, like those offered by Marcus by Goldman Sachs®, may have lower interest rates compared to those on credit cards. This means that financing a home renovation with a personal loan could be a good financing option. Marcus offers fixed-rate loans up to $40,000 . A loan from Marcus could help pay for the cost of a kitchen remodel, although additional funds may be required depending on the cost of the remodel.

Home Equity Line of Credit (HELOC)

A HELOC lets you borrow against the equity in your home. You receive a credit line, which you can draw against up to a certain amount, similar to a credit card. But if you do not pay back the borrowed amount within the repayment period, the lender may be able to repossess your home.

Home Equity Loans

Like a HELOC, a home equity loan lets you borrow against the equity in your home. When you take out a home equity loan, you borrow a lump sum that needs to be repaid, with interest, in installments over a specified period of time. If your home equity loan is not repaid, similar to a HELOC, your lender may be able to take possession of and sell your home and its brand new kitchen, which is not ideal. A home appraisal is typically required.

Credit Cards

Credit cards provide an unsecured line of credit. When comparing financing options, it may be helpful to consider the scope of the project and how different options could work with your financial plans. Factors to consider include the estimated overall cost, what payments you may or may not want to pay off quickly and each option’s interest rate.


When taking on any home renovation project, it's important to go in with a plan.


Where your money goes in a kitchen renovation, and tips to save as you go

When taking on any home renovation project, especially a kithen remodel, it's important to go in with a plan.

Start by setting a budget for your project. If you’ve budgeted $30,000 for your kitchen remodel, you should do what you can to stay in that range. That may mean saving on labor costs by doing some of the work yourself.

Let’s break down where some of your money will go within the kitchen.


The cost of kitchen cabinets can vary dramatically depending on whether you get custom cabinets or go with the prefabricated ones from a big-box store. Premade stock cabinets generally start around $80 or more per cabinet, while custom cabinetry could cost up to $1,500 per cabinet. If you’re looking to save some money on materials, consider giving your existing cabinets a fresh coat of paint or sanding and staining them a new color.


It’s no secret that the countertops in your kitchen are extremely important. And, if you want them to look good, it’ll cost you. Natural stone countertops, such as granite, slate or marble, can run from $35 to $500 per square foot; wood can start at $20 per square foot. If you’re looking to save on your countertops without sacrificing style, consider laminate. It comes in a variety of styles and may be less expensive than other materials.


For a kitchen to function, you’ll need appliances. Investing in higher-quality appliances is good for improving the value of your home. But, of course, that can come with a hefty price tag. If you want to go the budget route, you can find kitchen appliances that range anywhere from $250 for a basic dishwasher to $300 for a basic four-burner cooktop. On the other end of the market, you could spend between $5,000 or $50,000 for a top-of-the-line range.

Something to keep in mind is that the cost of materials and labor will vary depending on which part of the country you live in. For example, the average cost of a major kitchen remodel in the San Francisco area is $70,000, while the same remodel in Miami would cost, on average, $31,000.

What's next?

Just because renovating can be costly doesn’t mean you have to give up your dream kitchen. Not only are there many ways to save on your renovation project, but there are plenty of ways to finance your project without breaking the bank. If you’re looking for an easy way to help finance the project without hidden fees, consider a personal loan from Marcus.

This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this site were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA or any of their affiliates, subsidiaries or divisions.