Dec 6, 2022
Cost & Financing

How To Set A Kitchen Remodel Payment Schedule

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Philip Shepel
Shepel Homes rated 5/5 based on 22 reviews.

omeowners undertake home improvement to make their living spaces more comfortable or to increase the home resale value. Kitchen remodels are one of the most popular home improvement undertakings.

Some of the seven kitchen trends property owners want to incorporate in their homes are colorful cabinet colors, double islands, open shelving, countertop cabinets, banquette seating, light woods, and nontraditional touches such as antique cupboards.

According to Statista, global kitchen and dining furniture revenue are forecasted to reach USD$78.25 billion as of 2022. Also, the market segment is expected to grow at a 5.63% CAGR between 2022 to 2027.

Therefore, if you're looking to refresh your kitchen space soon, you'd want to create a kitchen remodel payment schedule to plan out your expenses throughout the project. A payment schedule outlines the kitchen remodel payments to be made throughout the project. Here are guidelines on how to set a kitchen remodel payment schedule:

1. Fix your budget

Notepad with Word Budget and Dollar Bills

When remodeling a kitchen, where to start can be confusing. Therefore, having a budget provides a clear point of view of what to expect in terms of costs. A budget is made up of small elements that constitute the overall cost of the project. Essentially, a typical kitchen remodel timeline of payments contains the following information:

  • The names of the contractor, subcontractors, or suppliers
  • The scope of work and the materials
  • The amount of payment due for each project task or the equipment and supplies
  • The due date for the payment

Therefore, you should develop a detailed list of all the elements and the cost breakdown based on materials and labor. You'd want to consult a professional kitchen contractor for more accurate information. They can provide insight into vital budgeting aspects such as:

  • Realistic cost estimates of high-quality materials and labor
  • Any unexpected expenses that may arise in the lifetime of the project
  • The lead times for different remodeling supplies
  • The items that may increase costs or add the most time to your project—for instance, custom-made materials and mid-project design changes.

Generally, the total cost of a project depends on various factors, such as your financial situation and how extensive your contract is. According to Forbes, the industry-standard cost of an upscale kitchen remodel is 10% of a home value. Therefore, if your property's appraised value is USD$400,000, it's safe to allocate about USD$40,000 for remodeling.

2. Set up a priority list

Interior designer writing an estimate

In case you have a limited budget, it's best to list the project's priorities to avoid spending on unnecessary things. For instance, before allocating money for luxurious banquet seating connected to the kitchen counter, you can consider replacing worn-out cabinets. In addition, a priority list gives your contractors a good understanding of the path to follow in case your original budget goes out of hand.

3. Make a kitchen remodel budget template in Excel

young businesswoman working on a spreadsheet

If you prefer a DIY kitchen remodel timeline of payments, you can make one from scratch using Excel. Ideally, it's best to create a budget template in an Excel spreadsheet because you can input your costs, income, and other budget elements, and any differences are calculated automatically. Also, you can add supplementary fields in your template to allow for modifications in case of unexpected expenses.

4. Choose a payment method

Credit Cards on a Laptop Keyboard

Below are three payment methods you can consider:

  • Pay per milestone

For most construction work, contractors aren’t paid a lump sum for all the work. Instead, the entire contract is divided into milestones and progress payments are made at regular intervals. Therefore, if you plan to pay per milestone, your payment schedule should reflect the tasks completed at each phase of the project and the typical costs*.*

For example, you can breakdown the contract into the following stages:

  • Rough work
  • Insulation
  • Drywall
  • Installation of cabinets, countertops, and other appliances
  • Slab and tile
  • Flooring
  • Finish work
  • Final paint

This way, your contractors can work within your budget limit for every milestone. Also, you can track each activity at every phase and make payments for any significant work completed. The milestone payment schedule is ideal for longer projects as it makes purchasing materials and paying contractors easier as the work progresses.

  • Lump-sum payment

You may pay a lump sum for the whole project instead of per milestone. Unlike pay-per-milestone, this schedule is simplified as it involves a fixed price for the project. However, you may encounter many unexpected expenses resulting in cost overruns. Also, it may be time-consuming to change paperwork in case of modifications such as an increase or decrease in material quantities.

  • Deposit vs. installments option

You can choose to pay a percentage of the cost as a deposit and then spread the rest of the payment as installments over the remaining lifetime of the project. The deposit is usually used to purchase pre-order materials. Like the milestone payment schedule, you get to monitor your project from the start and pay the installments if everything goes as planned at each stage.


A payment schedule provides a broad view of the project and the expected costs. It enables you to make timely payments to keep the contractor on track to strictly follow your kitchen remodeling timeline and complete the job on time. Therefore, if you're planning a kitchen remodel, above is a way to create a kitchen remodel payment schedule. Also, ensure you talk to a professional kitchen designer to help estimate costs more appropriately. Besides, they can determine the length of each project task.