Image by A&A Design Build Remodeling, Inc. via Flickr

Renovating your home can be a daunting task, especially when you want to stay under budget. Before you so much as spend money on a hammer, sit down and figure up the cost so you get a good idea of how much your project will cost.

Whether you’re determining the cost of your remodel for yourself or to give the bank an estimate, you need to know what you can work with. Your limit will be as much as your savings or the total amount of your renovation loan. Be aware that some renovation loans require a minimum down payment, so it may be a good idea to use any savings toward that. Some loans also require you to borrow a minimum amount and you must be well-qualified.

Determining the cost of the remodel isn’t limited to supplies. You need to account for labor, time, all of the materials, and the region in which you live. Some locations will carry a higher market price than others. Don’t settle on your first estimate—get several. In a downturned economy, most contractors and builders are willing to negotiate and work for a price less than they normally would. You may want to use a renovation calculator to get an idea of the project cost before seeking estimates.

Consider which renovations will maximize your home’s value. Completely adding a second bathroom tops the list, while a bathroom remodel and kitchen update come in at a close second. You’ll also want to think about curb appeal—is your siding appealing? Does your landscaping need a little care?

Plan and re-plan at every stage of the renovation to ensure you’re under budget and getting the exact look you want.