How to Finance a Bathroom Remodel

Planning a bathroom remodel can be both exciting and a little intimidating — especially when you start to look at the price tag. Whether you want a simple refresh or an all-out transformation, knowing your options (and your numbers) can make the process feel smoother and more doable.

If you’re looking at bathroom renovation costs and wondering how to make it work, you’re not alone. With a budget and the right financing, that new bathroom isn’t out of reach. Let’s discuss how to plan and pay for your bathroom remodel project — without breaking a sweat.

Set a budget for your bathroom remodel

Before you start choosing paint swatches and new fixtures for your bathroom, first determine how much you can afford to spend, so you can maintain your other financial obligations while making improvements. Having a solid budget can help guide your decisions and determine which financing method may work best for you.

Estimate remodeling costs

Bathroom remodels can typically range from $6,600 to $18,000, depending on the size of the space and the complexity of the work, although some can cost much more.¹ Before you begin your project, gather quotes from a few local contractors, so you know what to expect. You can ask about pricing for the following common expenses for your project:

• Labor
• Permits
• Materials
• Disposal of materials
• Plumbing and electrical upgrades

Once you’ve gathered your estimates, you’ll have a better idea of how much you might need to spend and where you could potentially cut back to fit your budget.

Prioritize what matters most

If your budget is limited, focus on the improvements that add the most value or functionality to your remodel. Your priorities might include replacing a leaking tub, improving the lighting or upgrading your storage space. Nice-to-have features, such as high-end finishes or luxury amenities, can often wait for a future project.

Pad your budget for unplanned expenses

No matter how prepared you are, surprises may pop up. You might uncover hidden problems once the renovation is underway. For example, opening up walls could reveal old or corroded pipes that need to be replaced, or water damage that requires new subflooring before you can install tile. These kinds of surprises are common and can quickly add to your overall budget.

Try to set aside about 20% of your total budget to cover potential surprises during the remodeling process.² Planning for the unexpected can help you stay on track financially and keep your remodel moving forward without unnecessary stress.

Ways to finance your bathroom remodel

Once you’ve mapped out your project costs, it’s time to explore ways to finance your remodel that align with your budget. Below are some options to consider.

Personal loan

A personal loan is a common choice for financing a bathroom remodel. You can typically apply for a personal loan through a lender, bank or credit union. If approved, you’ll receive a lump sum and repay the loan in fixed monthly payments that include interest (the cost of borrowing).

OneMain offers personal loans you can use for home improvements, including a bathroom remodel. You can cover the costs of your remodel right away and pay for them over time, so you don’t have to put your project on hold while you save up the full amount.

A personal loan can be secured or unsecured. A secured loan is backed by collateral (something of value you possess, such as a car), while an unsecured loan is not. With a secured loan, you can potentially boost your borrowing power and qualify for a higher loan amount, more favorable interest rate or both. It’s important to remember that if you don’t repay a secured loan, the lender can take your collateral.

If you’re curious about your options, you can check whether you prequalify for a OneMain personal loan. Checking takes only a few minutes and doesn’t affect your credit score.

Home equity loan or home equity line of credit

If a lender determines you have enough equity in your home — the difference between what you owe on your mortgage and the market value of your house — you may be able to take out a home equity loan or home equity line of credit (HELOC).

A home equity loan is a type of installment loan that allows you to receive a lump sum of funds at once and repay over time in fixed monthly payments with interest. A HELOC, on the other hand, is a revolving line of credit that allows you to borrow as much as you need for a set amount of time, up to a predetermined limit.

Both a home equity loan and HELOC are secured, meaning your home is used as collateral to back the loan. Keep in mind that if you’re unable to make your monthly payments, the lender has the right to foreclose on your home to recover what you owe.

Credit cards

Credit cards can be convenient for smaller costs like updating light fixtures or buying supplies for your remodeling project. Some home improvement or hardware stores may offer store credit cards with special financing promotions, like a 0% APR (annual percentage rate) promotional or introductory offer, allowing you to avoid paying interest on purchases for a set period (usually 12-21 months).³

One thing to remember is that once the promotional period ends, any remaining balance on your credit card will begin to accrue interest at the non-promotional APR. If you’re unable to pay the full amount before the offer period ends, it may become difficult to pay off the balance over time. Be sure only to charge what you know you can comfortably afford to repay.

Buy now, pay later plans

Many home improvement retailers partner with third-party financing programs that offer buy now, pay later (BNPL) plans, so you can spread out payments over time, which could make larger purchases like flooring and appliances more manageable. BNPL is a short-term financing option that lets you make purchases and pay for them in a set number of typically interest-free installments over a specific period, usually over weeks or months. It’s important to note that BNPL can’t cover the full cost of a remodel, but it may be available on certain purchases.

When you check out online, you can choose BNPL as your payment method. You may need to provide a down payment of around 25% of the purchase price to start the plan.⁴ The retailer will receive the full amount upfront from the lender, and you’ll pay the lender the remaining balance through automatic payments from your credit or debit card or bank account.

Be sure to review the repayment terms and any fees before committing to a BNPL plan. While BNPL options may help you get what you need sooner, missing payments could lead to added costs or a negative impact on your credit.

Tips to stay on budget during your remodel

A bathroom renovation can easily become more expensive than planned, especially when unexpected issues or design changes arise. Taking a few proactive steps can help you manage costs and stay on budget.

• Take on small DIY tasks if you feel comfortable: Taking on manageable projects yourself — such as painting, swapping out hardware or installing shelves — may help you save on labor costs.
• Shop sales or consider gently used materials for savings: Consider looking for discounts at local stores, online marketplaces or home improvement resale shops. Gently used vanities, fixtures or even tiles may offer significant savings without sacrificing quality.
• Keep your goals in focus: Remind yourself of your top priorities before making each purchase. It’s easy for costs to climb with extra features or upgrades. Sticking to your main goals can help prevent budget creep and ensure you’re happy with the finished project without overspending.

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Refresh your space with the right financing

A bathroom remodel can make a big difference in how your home looks and feels. By planning, setting a budget and choosing a financing option that fits your wallet and goals, you can take the stress out of the process. Take the time to compare monthly payments and the total cost, including interest and fees, before making a decision. Whether you’re refreshing the space or doing a full renovation, smart borrowing can help you move forward with confidence.

Sources

1 https://www.nerdwallet.com/article/mortgages/bathroom-remodel-cost
2 https://www.thisoldhouse.com/bathrooms/bathroom-remodel-cost#toc-additional-costs
3 https://www.bankrate.com/credit-cards/zero-interest/zero-percent-intro-apr-guide/#choose
4 https://www.investopedia.com/buy-now-pay-later-5182291