What Is A Realistic Budget For Interior Design?

A realistic budget for interior design depends on the size of the room or apartment, as well as the scope of the project. For example, the interior design of a room in NYC may vary from $3,000 to $10,000, whereas a larger room could range from $10,000 to $25,000. However, the whole apartment or home interior design may cost between $50,000 and $150,000 or more, depending on the scope and complexity of the project. 

If you’re a construction estimator and want to create a realistic budget for interior design, we suggest allocating 7-10% of the apartment’s value for this purpose. However, this recommendation applies to mid-range interior design. For designer-level finishes, we recommend allocating at least 25% of the project’s total value. This comprehensive blog post will discuss how to create a realistic budget for interior design, as well as the factors that can influence your budget. But before we proceed to the main topic, have you been searching for “construction estimating services near me”? Then, My Virtual Estimator can help. With years of experience, they are the industry leaders in construction cost estimations. Let’s start by understanding the process of creating a realistic budget for interior design.

How to Create a Realistic Budget for Interior Design:

Creating a realistic budget for interior design can be challenging, especially if you’re unfamiliar with the basics. But there is no need to worry whether you are a construction manager or an estimator. Here, we will outline the steps required to create a realistic budget for interior design. 

How to Prioritize Interior Design on a Budget:

When creating a realistic budget, the first step is to make a list of everything you will be doing. However, depending on the budget limitation, prioritize the interior first. If your list exceeds your budget, you need to decide which part of the interior design to start with first and which parts can wait. For example, you can start with the living room and then come to the lounge or the guest room later. Before you begin working on renovations, ensure you have prioritized your tasks. Moreover, when it comes to renovations, it is essential to follow the natural order of things. For example, start with the kitchen cabinets and end with the kitchen flooring. 

Cost Breakdown by Interior Design Elements

To establish a clear and realistic interior design budget, it’s helpful to break the costs down by category. These categories typically include:

1. Furniture and Fixtures:  

This includes sofas, dining tables, chairs, beds, lighting fixtures, and cabinetry. For a single room, these items may cost between $3,000 and $10,000 or more, depending on the quality and brand. If you’re choosing designer or customized pieces, this budget can increase significantly.

2. Finishes and Materials:  

Wall treatments, paint, wallpaper, tiles, flooring, and ceiling designs fall under this category. You should allocate roughly 15–25% of your total budget here, depending on your desired look. For example, marble flooring will cost significantly more than vinyl or wood laminate.

3. Labor and Contractor Fees:  

If you’re hiring contractors or subcontractors to install built-ins, custom pieces, or lighting systems, labor costs must be factored in. These may make up 20–30% of your total design budget, depending on the region and scope of work.

4. Designer Fees:  

Interior designers typically charge in three ways: a flat fee, an hourly rate (ranging from $100 to $300 per hour), or a percentage of the total project cost (usually 10–25%). It’s essential to clarify this in advance to avoid surprises later.

5. Soft Furnishings and Décor:  

Curtains, rugs, cushions, artwork, indoor plants, and décor accessories add personality to your space. These smaller items may cost between $1,000 and $5,000 for a room, depending on taste and quantity, but they’re critical to completing the final look.

6. Contingency Fund:  

It’s smart to allocate 10–15% of your budget for unexpected costs or changes. Unforeseen electrical work, plumbing adjustments, or material availability issues can add extra expenses that you didn’t initially plan for.

Interior Design Budget Based on Project Scope

• Basic Refresh (Repaint, Minor Decor, Light Fixtures):  

Estimated budget: $2,000–$5,000 per room

• Mid-Range Redesign (New Furniture, Flooring, Light Remodeling):  

Estimated budget: $8,000–$15,000 per room

• Full Renovation (Custom Furniture, Wall Partitions, Designer Finishes):  

Estimated budget: $20,000–$50,000+ per room

If you’re budgeting for a whole home, multiply accordingly while accounting for economies of scale (bulk purchases, service discounts).

Tips to Save on Interior Design Without Compromising Style

Budget doesn’t always mean cutting corners. Smart planning and research can help you stay within budget and still achieve a designer-worthy look.

1. Shop sales and online marketplaces for gently used or overstock items.
2. Repurpose existing furniture with a fresh coat of paint or new upholstery.
3. Mix high and low elements—invest in statement pieces and balance them with affordable options.
4. Use 3D modeling software or interior design apps to visualize spaces and avoid costly errors.
5. Work with a budget-conscious interior designer who understands cost-effective sourcing.

When Should You Hire an Interior Designer?

Hiring a professional interior designer is ideal when:

• You have ample space or a whole house to design.
• You’re aiming for a cohesive, high-end finish.
• You lack the time to source and coordinate materials and furniture.
• You’re looking to increase your property’s market value through design.

Designers can help optimize your budget by preventing costly mistakes and sourcing quality materials at more competitive rates through their vendor networks.

Bottom Line:

Creating a realistic budget for interior design doesn’t have to feel overwhelming. Whether you’re working with a modest budget or planning a complete luxury remodel, the key lies in planning, prioritizing, and understanding where your money will make the most impact. By breaking down the costs, aligning your priorities with your goals, and accounting for unexpected expenses, you’ll be better equipped to manage your project efficiently.

And remember, if you’re a construction estimator looking to include interior design costs in your proposal or project plan, services like My Virtual Estimator are here to help. With experience in both residential and commercial cost estimation, they ensure your figures are accurate, realistic, and ready for execution. Interior design is not just about beauty—it’s about function, comfort, and value. So, spend wisely, design boldly, and build confidently.