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Bathroom Resources

Calculating the Return on Your Bathroom Remodel

A bathroom renovation on your home is an opportunity to construct the luxurious bathroom of your dreams or prepare your home for the market. Either way, understanding your potential bathroom remodel ROI is important to helping you make the best financial decisions possible.

This guide will walk you through the types of bathroom renovations and tips to calculating cost and maximizing your project’s ROI.

Table of Contents

Benefits of a Bathroom Remodel

If your bathroom fixtures are in working condition, a remodel might not be on your immediate radar, but a careful inspection — such as the one your home will undergo if being brought to market — can reveal issues that might make a bathroom remodel in your best interest.

Cracked tile(s) or outdated fixtures can be among the most obvious problems, but bathrooms can also suffer from mold, water damage, faulty electrical systems, or structural concerns.

Additionally, an updated bathroom can help attract buyers if you intend to sell your house in the near future. It’s no wonder that 26 percent of sellers make bathroom improvements to their home before listing.

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Types of Bathroom Remodels

From a simple fixture replacement to a complete buildout, bathroom remodels can vary greatly in scale and cost depending on the amount of work to be done, the size of the bathroom, and the quality and material of furnishings. 

You’ll also want to consider:

  1. Your home’s value: A more affordable home likely doesn’t require an extensive bathroom buildout or high-end fixtures.
  2. Market demand: If you plan to sell in the immediate future and your renovation goal is to generate buyer interest or increase the sell price, talk to your realtor about homebuyer demands related to upgraded bathrooms.
  3. Your budget: This is often the most important piece of any renovation puzzle and will dictate the type and extent of your project, as well as your bathroom remodel ROI.

For homeowners exploring a full renovation, Remodeling Magazine’s Cost vs. Value Report helps classify the projects into two main categories — midrange and upscale.

Midrange Remodel

This efficient and appealing (though not extravagant) remodel includes installing functional bathroom flooring such as ceramic tile, a porcelain bath with ceramic tiles surrounding, new chrome fixtures, a recessed medicine cabinet with lights, and a new toilet.

Nationally, this form of remodel costs about $21,000 and will net an average of ROI of about 64 percent.

Upscale Remodel

An upscale overhaul of the bathroom typically requires structural changes to a home’s layout and likely includes heated ceramic tile flooring, high-end faucets and fixtures, a double-vanity, new lighting, a glass-enclosed shower, custom cabinetry, and improved in-room HVAC.

This luxurious bathroom upgrade can make you feel like you’re living in a resort, but raises the average national price to about $67,000.

The increased average of $67,000 also results in a slight dip to ROI — clocking in nationally at about 57 percent.

Maximizing Your Bathroom Remodel ROI

Working with a trusted contractor like the pros at Modernize can help you identify what areas of your bathroom are in need of repair. Look immediately to fixtures or features that are in disrepair and make upgrades, not just repairs, to prevent their future issues — e.g. increasing ventilation by installing a window or replacing countertops with non-porous materials. Also look for energy-efficient bathroom fixtures to reduce energy costs over time.

If you’re preparing for a more detailed renovation, it’s important to consider layout and how it impacts the functionality — a toilet paper holder on a wall opposite the toilet probably isn’t a good idea.

And while vibrant bathrooms have become a social media sensation, it might be wise to consider a more neutral tone if you intend to sell. In fact, a light blue bathroom was found to increase the sale price of a home by nearly $2,800.

Finally, a major bathroom renovation might not fit into your budget or long term goals — and that’s OK. A bathroom remodel presents more flexibility compared to other home renovations, and there are strategies to save money while maximizing ROI.

Making individual upgrades to only select features is a great strategy to save costs and maximize your bathroom remodel ROI. Here are some average costs of common upgradeable bathroom features:

  • Cabinets: $1,200–$13,000
  • Countertops: $900–$6,500
  • Flooring: $800–$7,000
  • Lighting: $120–$4,000
  • Shower: $450–$10,000
  • Sink: $190–$6,500
  • Toilet: $130–$780
  • Tub: $400–$8,000

Next Steps

Before you embark on any home renovation project, consulting with a professional contractor can help you make the best financial decisions possible and avoid unnecessary headaches. The pros at Modernize can help connect you with trusted, local contractors who will help you build the bathroom you’ve always wanted and maximize your bathroom remodel ROI.

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