The industry standard advice is below 5% and below 15% of your home’s overall value. The average is about 10% but does vary from project to project. If your home is worth $200,000, your remodel should cost around $20,000. In general, you want to focus on what will provide the most dramatic changes to update the remodel and give the best return on investment (ROI). This can be a little hard to calculate in advance with great precision, but cabinets and countertops can often play the most decisive role in whether the kitchen looks drab and dated or chic. That’s why these parts of a remodel (plus labor) can cost up to half of the renovation’s total cost.
There are, of course, many ways to reduce costs in remodeling your kitchen. You can always get hardware secondhand or on clearance. Consider resurfacing or painting the existing cabinets instead of replacing them. Do some of the work yourself rather than contract it out. And, as always, it’s best practice to get quotes from reputable businesses in your area to see how much the exact costs should be.