How to plan a renovation budget?

When planning a major home renovation in Calgary, the most important thing is to gather realistic data and systematically calculate all costs: from materials and labor to permits and a contingency fund. The main conclusion is that the average cost of renovation in the city ranges from CAD 140 to CAD 190 per square foot, but can vary significantly depending on the type of premises, the level of finish, and the complexity of the work.

1. Estimate the total amount of work

First, determine the area of each zone you plan to renovate. For example, standard cosmetic repairs (painting walls, replacing flooring, basic replacement of plumbing fixtures) can be estimated closer to the lower end of the cost range — approximately $120–150 per square foot. However, if we are talking about an average level of kitchen or bathroom renovation with partial replacement of electrical and plumbing fixtures, the estimated range is 180–225 CAD/sq. ft., and for complete demolition and remodeling — up to 250–275 CAD/sq. ft.

In a kitchen design, the cost can reach 250–500 CAD/sq. ft. depending on the amount of wall demolition, the quality of countertops, and storage systems. For example, a simple kitchen renovation (painting cabinets, replacing the backsplash and base countertop) will cost between CAD 20,000 and CAD 40,000, while a complete renovation will cost between CAD 110,000 and CAD 190,000.

2. Permit costs and additional fees

In Calgary, obtaining a building permit consists of several components:

  • The base rate per square foot (floor area) is approximately CAD 0.58/sq. ft. for residential buildings and a “minimum fee” of CAD 160 per application.
  • In addition, a Safety Codes Levy of 4% of the permit amount is charged.
  • If you change the design during construction or require additional inspections, each re-inspection may cost up to CAD 160.

In general, permit costs are about 1–3% of the total estimated cost of repairs, but it is always a good idea to include them as a separate line item in your budget.

3. Labor costs

Contractor labor costs in Calgary vary considerably:

  • The average hourly rate for a general contractor for renovation work is around CAD 36/hour.
  • For framing contractors, the average rate is CAD 32.60/hour.
  • If you hire handymen for small jobs (shelf installation, minor repairs), the average cost of a single visit or small job can range from CAD 120 per day to CAD 1,500 for larger jobs, depending on the complexity and duration of the task.

When planning your budget, include labor costs as a separate item, calculating the total number of working hours for each stage of the renovation: demolition, electrical work, plumbing, framing, and finishing work.

4. Cost of materials and equipment

Prices for construction and finishing materials may vary depending on the supplier and exchange rates. Approximate figures for 2025:

  • Laminate or mid-range vinyl flooring — $2–5 per square foot
  • Bathroom tiles — CAD 3–12/sq. ft.
  • Mid-range kitchen cabinets and countertops — CAD 15,000–30,000 total
  • Premium paint — CAD 40–60 per can (enough for 200–300 sq. ft.)

To minimize the risk of overspending, collect several commercial offers from local suppliers and compare not only the price, but also the delivery terms and availability of guarantees.

5. Reserve for unforeseen expenses

Hidden defects are often discovered during demolition: leaking pipes, poor electrical wiring, uneven surfaces. It is usually recommended to set aside 10–20% of the total estimate to cover these additional costs. This reserve will help you avoid work stoppages due to unexpected problems and ensure flexibility in making quick decisions.

6. Payment schedule and budget control

  1. Determine the area of each repair zone and the approximate cost of materials and labor (CAD/sq. ft. or CAD/sq. m).
  2. Multiply the area by the appropriate rate for the type of repair (cosmetic, medium, major).
  3. Add the cost of labor hours based on the estimated number of hours for each specialist (contractor, electrician, plumber, etc.).
  4. Calculate the amount of permits and fees: $0.58 per sq. ft. plus a minimum fee and 4% for safety.
  5. Set aside a reserve of 10–20% for unforeseen expenses.
  6. Systematically compare actual expenses with the estimate and adjust the scope of work or materials as needed.

Conclusion

Careful planning of your home renovation budget in Calgary will help you avoid financial surprises and ensure that your project is completed on time. The key components are: a reasonable estimate of the cost per square foot, realistic contractor rates, consideration of permits and fees, and a contingency fund for unexpected expenses. By following this step-by-step calculation method, you will get a comprehensive estimate and be able to control your expenses at all stages of the renovation without stress or delays.