How much does a bathroom remodel cost?

A bathroom remodel may be one of the smartest home investments you can make. Whether you’re considering a simple cosmetic update like painting and new light fixtures or an entirely reimagined layout, bathroom renovations generally deliver strong returns and boost your home’s appeal to future buyers.

Before you start planning a bathroom transformation, it’s important to understand the real cost of a remodel. This guide breaks down what you can realistically expect to spend so you can make good financial choices about your project.

How much does a bathroom renovation cost?

While bathroom remodel costs vary depending on where you live and the amount of remodeling you do, the national average cost to remodel a 5x7 bathroom is around $6500, according to Redfin. If you decide to spend on upgraded fixtures and other materials, the cost could increase to around $25,000. While that cost can seem high, Redfin also notes that bathroom upgrades generally increase resale value, with updated cabinets, vanities, and accessibility features making a big impact.

Start with a wish list and a must-have list

Create a wish list and a must-have list for the renovation to help you identify nonnegotiable updates for your bathroom versus features that you’d like to include but could live without.

From there, you can allocate your renovation budget accordingly. For example, imagine you choose to replace only a toilet and sink as well as paint the bathroom. If the cost of these must-have items comes in under your desired total budget, you can then add other wish list items to the project.

The budget breaker: Changing your bathroom’s footprint

While no two bathrooms are the same, you can count on most expensive remodels significantly changing the bathroom footprint. If you want to move your shower from one wall to another or install a bathtub in an area that doesn’t offer a plumbing hookup, it’s going to be a major expense, particularly if the bathroom is not on the first floor of your home.

To find out how much this type of remodel will cost, your best bet is to meet with a contractor who can look at your home and its plumbing and give you an estimate of the ultimate cost.

Estimating bathroom remodel costs

Again, the cost for a bathroom remodel can vary dramatically. Budget-conscious homeowners may spend around $6,000 or less, while more extensive renovations (and high-end materials) can lead to much higher costs. Let’s explore the range of costs for bathroom renovation materials and labor below.

Materials costs

Here’s what you can expect to pay for bathroom renovation materials:

Labor

According to HomeAdvisor, labor typically accounts for 40% – 65% of your bathroom remodel budget.

If you can do the bulk of the work yourself, you’ll save a ton of money – but you should know your limitations. Skilled labor costs more because the finished product is superior to most DIY efforts.

Particularly in the bathroom, you don’t want to skimp on plumbing or tile work if you aren’t already skilled at this work. If done incorrectly, bad plumbing will haunt you in the form of water damage for years to come. If you’re looking a DIY project, you can certainly paint, replace a faucet, or do some demo work to reduce costs.

Cost vs. value

It’s easy to focus on the costs of a project you’re thinking of undertaking, but it’s important to remember that home remodeling can add to the value of your home. That means that some of your actual costs will be reimbursed to you later, when you sell the home.

If you have enough equity in your home, you may want to consider a home equity loan to finance your remodel or a home equity line of credit (HELOC). Some homeowners may not realize they’re able to use their home equity this way.  A home equity loan will give you a lump sum of cash for your remodel if you qualify, so you would have to budget carefully in order not to spend more than the amount of your loan.

With a HELOC you would have an open line of credit with a maximum determined by your lender. Depending on your unique circumstances, a HELOC may be a better fit, but keep in mind that Rocket Mortgage doesn’t offer HELOCs at this time.

Resale value

Homes build value over time, otherwise known as equity. For example, from 1967 to 2024, U.S. homes appreciated by an average of 4.27% per year. If and when you eventually sell your home, you can capture this appreciation in the form of sale proceeds. However, keep in mind that home values rise and fall based on local market conditions (supply and demand), so appreciation is never guaranteed.

Tax benefit

Although your primary residence doesn’t enjoy the same tax benefits¹ as a real estate investment property might, one important tax consideration is that capital improvements to your property increase your cost basis in your home. If you bought your home 20 years ago for $200,000, and you resell it in this tax year for $800,000, you’ll have a realized capital gain of $600,000. Here’s how we calculated that:

$800,000 (sales price) − $200,000 (cost basis) = $600,000

If you’re an individual taxpayer, you’ll be able to claim a $250,000 exemption, and if you’re married and filing jointly, you’ll be able to claim a $500,000 exemption:

The bottom line: The average price to renovate a bathroom depends on many factors

A bathroom remodel can fit many budgets and styles. The final cost will depend on the materials you use, the labor costs in your area, and the overall scope of your project. Consider making a list of must-haves and nice-to-haves so you can prioritize spending on the things that mean the most to you.

If you’re ready to start your bathroom remodeling project, you can check your financing options, such as home improvement personal loans with Rocket Loans.

¹ Rocket Loans does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.