How To Finance A Bathroom Remodel

Hands Framing Custom Master Bathroom Photo Section with Drawing Behind.

Your bathroom is one of the most personal and intimate spaces inside your home. Aside from the bedroom, it’s where you can find peace and solitude from the outside world. It’s also one of the most important, if not the most, part of your home in which you can practice self-care and proper hygiene.

But as most people tend to take their bathrooms for granted, they don’t recognize its paramount importance until they’ve experienced plumbing problems, tile damage, and other bathroom issues. You can pay more attention to your bathroom through a bathroom remodel.

What Is A Bathroom Remodel?

A bathroom remodel is essentially a bathroom makeover. When accomplishing this project, you can either achieve an all-or-nothing makeover or achieve progress by dividing the entire project into smaller, separate ones.

Bathroom Remodel Costs: An Overview

If you’re going to finance a bathroom remodel, you should first determine the potential costs of your project. This way, you can prepare the right amount and understand your bathroom remodel financing options.

3D rendering of a mobile device with an mortgage calculator and a home interior under remodeling

According to Angie’s List, lower-end bathroom remodels can cost as little as USD$2,500, while higher-end projects can reach more than USD$23,000, having an average of USD$10,545 in 2020. Fifty percent of these costs cover the labor expenses of different professionals involved in the project, such as contractors, tradespeople, designers, and more.

Ways To Finance Your Bathroom Remodel

Bathroom remodels costs are no joke especially if you want to add luxuries like countertop or bathtub. If you’ll spend quite a considerable amount on this home improvement, it’s essential to plan and prepare your finances to make the most out of your money while ensuring you won’t go overboard with reasonable limitations.

Thus, here are some ideal and convenient ways to finance your bathroom remodel:

  • Spend Your Personal Savings

Getting a significant amount from your savings is perhaps the most convenient way of funding your bathroom remodel without incurring any debts. If you’ve been planning a bathroom remodel for the longest time, you’re more likely to have money allocated for it in your savings.

Since you’re building the target amount yourself, you can have the peace of mind knowing you won’t have to pay for a loan and its additional interests. Also, parking your bathroom remodel funds in a high-interest savings account can yield interests credited to your account, which you can use on the project.

  • Take Out A Personal Loan

A significant disadvantage of using your own savings to finance a bathroom remodel is that you can’t start the project at all if you don’t have enough money saved. On the other hand, if your bathroom requires an emergency remodel, personal loans are one of your best financing options.

Basically, a personal loan involves borrowing a certain amount of money from a lender to be repaid with assigned regular repayments within the agreed term. With this option, you know how long you’ll have to repay the loan and shell out the same amount monthly.

However, you might find it challenging to take out a loan if you don’t have a good, established credit history yet. If you ever come across a loan, chances are, the loan has a high interest.

  • Look Into A Home Improvement Loan

For a low-interest loan that’s easier to repay, you can take a loan that’s specifically established for home remodeling projects. These loans give homeowners with insufficient savings a chance to remodel, repair, or renovate their homes.

That said, home improvement loans have two main categories: secured or unsecured personal loans. You can also look for certain lenders that allow special financing terms and options for a home improvement project.

In an unsecured home improvement loan, the lender will let you borrow money without security in the form of a collateral. To be qualified for this loan type, they’ll take your credit history into account and use it to assign your loan’s interest rate.

Meanwhile, secured home improvement loans have longer repayment periods and lower interests, but assign your home as collateral. If you fail to pay back your loan, the lending company can have the right to foreclose your entire property even if you’ve used the borrowed money for the bathroom remodel only.

You can also take a look at mortgage refinancing.


A bathroom remodel project is a major undertaking. It involves a long, time-consuming process of estimating costs, preparing funds, planning and designing the look, finding contractors, remodeling the bathroom itself, and so on.

If you’ve failed the initial stages of your bathroom remodel project by not being able to find worthwhile ways to finance it, then your entire remodel may be at risk.

Sandra Ruiz
With a Master's in Environmental Design from Yale University, Sandra Ruiz has dedicated 15 years to reshaping living spaces. Her career started in urban planning, then transitioned to home renovation, where she has left a mark. Sandra became part of our team in 2020, quickly establishing herself with her innovative approaches to space utilization and energy efficiency. She is passionate about hiking, often drawing inspiration from nature for her designs. Her approach seamlessly blends practicality with aesthetic appeal, making her a go-to expert for homeowners and design enthusiasts alike.

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