How to Estimate Remodeling Costs Like a Pro
Remodels, renovations & additions are exciting, but they can also be challenging—especially when it comes to budgeting. Whether you're a homeowner planning a renovation or a contractor improving estimating process, knowing how to break down costs accurately is essential.
At Complements Home, we take the estimating for construction and remodeling very seriously. We believe that guessing should be left for games, while data should drive our professional estimation methods. In this guide, we’ll show you how we estimate remodeling costs like a pro.
Breaking Down Remodel Costs: Labor and Materials
Every construction project has two primary cost drivers: labor and materials. Understanding how these components factor into an estimate can help ensure accuracy and avoid budget surprises.
1. The Labor Factor
We don’t pull costs from thin air. Instead, we rely on subcontractor purchasing agreements—pre-negotiated rates based on how the work is measured. These agreements outline pricing based on:
Square footage (e.g., flooring, tile, drywall)
Lineal footage (e.g., trim work, moldings)
Per-unit cost (e.g., window installations, cabinetry, sinks, plumbing, electrical)
Hourly cost (e.g., cleaning, trips to the dump, design & project management time)
These predetermined rates provide a solid foundation for estimating labor costs, ensuring accuracy and consistency across projects.
Side Note. This is not a process proprietary to us. Many contractors use this method to shop & buy labor. If you’re reading between the lines here; this keeps labor prices comparable from contractor to contractor.
2. The Material Cost Factor
A precise remodel estimate also relies on accurate material pricing. At Complements Home, we use a cost catalog—a purchasing database that tracks material costs in a similar fashion:
Square footage (e.g., tile, flooring, countertops)
Lineal footage (e.g., trim, railings)
Per-item cost (e.g., cabinets, lighting fixtures, sinks)
This method ensures that every material in your estimate is priced correctly, preventing costly surprises later in the project.
The Power of a Takeoff: Where Accuracy Begins
So, how do professionals turn these numbers into a real estimate? It all starts with a takeoff—a measurement process that determines the exact quantities needed for a project.
First, you need plans. We use Computer Aided Design- (CAD) for all of our plan sets. Although even a to scale sketch on graph paper works. We use CAD as it coordinates our floor plans, elevations and key schedules: demo plans, electrical diagrams, etc.
For example, when estimating a bathroom remodel, we:
Use Measurements for tile square footage for flooring and walls
Calculate the vanity and cabinetry needs
Determine the countertop size
Reference these numbers in our cost catalog
Input them into Excel or specialized estimation software
With these steps, we create data-driven estimates rather than relying on guesswork.
The Key Difference Between an Estimate and a Price
Here’s the kicker: an estimate is only as good as its assumptions.
Many homeowners and even contractors don’t realize that estimates are based on assumptions about scope and product quality. And the biggest drivers of project price are project scope and product specifications ( product quality). The final price of a renovation depends on a defined scope of work and a detailed product specification book. See our blog on a project specification book here.
We provide an estimate during our initial consult. But before we start any work, solidify the scope of work & product specifications changing from an estimate to a contract price.
We do this to eliminating ambiguity, prevent cost over runs in materials and labor, and generally avoid dissatisfaction. After all, being a professional means having process that reflect high-end construction standards.
Want to Master the Art of Estimating?
At Complements Home, we specialize in architectural design, interior design, construction, remodeling, and high-end renovations. If you want to take your remodeling knowledge to the next level, follow us on Instagram : @complementshome for expert tips.
Ready to start your dream remodel with confidence? Contact us today and let’s build something incredible together.
