How to Prepare an Interior Design Budget [With Template]

Interior design fosters an empowering, productive, and healthy workspace. It’s all about balancing between beauty and function.

The COVID-19 pandemic has forced people to reevaluate their homes, and that interest caught on to other aspects of life, such as work. Because of that, the interior design industry has seen a notable increase in demand from businesses across many sectors — from the food and beverage industry to healthcare.

The jump is also due to more business owners seeing the benefits of working or selling in well-designed and balanced spaces.

Quality and distinguishable interior design can be a source of pride for any business. It can motivate their employees to work more efficiently, elevate their brand identity, and establish a sense of security.

For those who don’t know what to expect, thinking about the costs of interior design services can be overwhelming.

Keep reading this piece to feel more confident as you prepare. We’ll detail each component and step you need to take to create a practical budget.

After you’ve gone through this guide, feel free to browse through Clutch’s directory for the leading interior design companies.

What Goes Into an Interior Design Budget

The role of an interior designer is to plan and design a beautiful space that’s functional and comfortable. Their duties go beyond simply installing fancy light fixtures and furniture. They make sure to maximize a room in every aspect possible.

With the help of an experienced interior designer, you can even save time and resources by avoiding layman oversights and DIY mistakes. Here’s what your interior design budget could include:

• Custom furniture is great when emphasizing uniqueness and personality in a space. Interior designers often create bespoke furniture if required or for special projects. They use the finest materials to build anything — from simple sofas to elaborate center consoles. Custom chairs and desks can become a part of an office’s identity, elevating its functionality.
• Conceptual drawings and drafts are the first look of rooms drawn by interior designers by hand or using professional software. They’ll measure a space, listen to the client’s brief, and plan an effective layout. Typically, clients look at these conceptual drawings before designers transform the space.
• Lighting design is integral to the overall feel and practicality of a space. Great interior designers help clients select the best lighting fixtures, procure distinctive lighting pieces, or coordinate installation. They have a great eye for detail, making sure each room gets proper lighting according to their functional needs.
• Space planning is different from conceptual drawings as it focuses more on organizing space and identifying interrelated areas. It’s among the fundamental aspects of interior design as it aims to optimize the use, flow, and harmony of the property.
• Construction administration oversees everything during the building process. Suppose you plan to hire an interior design agency. In that case, they typically have dedicated staff that are responsible for being on site all the time and looking after the construction workers installing fixtures, painting walls, and moving furniture. They have organized methods in place to track everything from the labor to ordered materials.
• Art curation refers to assessing, canvassing, and procuring decorative elements that will harmonize with the space. Interior designers know the best places to acquire different art pieces, from local artists to known painters. You can expect interior designers to have a refined taste when it comes to selecting the best pieces that add value and depth to a space.
• Concierge purchasing management is a service that involves providing step-by-step assistance to design clients interested in looking at and buying different products. In interior design, it refers to when agencies help find certain pieces of furniture, plan build schedules, and more.

Not all interior designers offer the same scope of service, and the rates in the industry vary widely depending on the type of space and scope. These services are examples of where your budget goes during the project. 

How to Prepare an Interior Design Budget

1. Evaluate your Space and Design Goals
2. Research the Costs of Materials
3. Allocate Funds for Furniture and Fixtures
4. Leave Room for Constructure Fees
5. Budget for Other Design Elements
6. Consult an Interior Designer

1. Evaluate your Space and Design Goals

The starting point is understanding and defining both so you can plan a detailed budget properly.

The type and scale of your space is arguably the most important element that determines the cost of your interior decorating project.

Always be realistic when considering factors such as design type and scale. For instance, interior design projects on bigger and more premium commercial spaces will definitely cost more than spaces on simpler apartments and stalls.

In addition to variables, location is another thing to consider. Is your space located in an urban area? Rates in the city will differ from rates in smaller towns, so adjust your budget accordingly.

Once you evaluate your space, you can start outlining your design goals. What is the purpose of the room? Do you need an overhaul for the whole space? How complex is the design? What features do you need? After you answer all these questions, you can proceed to the next step.

2. Research the Costs of Materials

Regardless of the style you go with for your room design, the materials you use will make the biggest difference.

Every interior design will emphasize the importance of finding the perfect materials that are durable and lasting. The materials you use play a key role in the success of your design.

Cheap and poor-quality materials can give you more trouble than benefits. You may be saving money today but you can end up with more repair bills in the future.

However, you don’t need to spend a pretty penny on premium materials. Doing proper research will help you avoid overspending.

As you plan your interior design budget, thoroughly read up on different types of materials and their costs. Stones, wood, ceramics, and paint are all included in this category. Adding all of those together will make up a good portion of your budget.

3. Allocate Funds for Furniture and Fixtures

Furniture and fixtures are crucial elements to the overall design of a space.

In interior design, furniture refers to desks, chairs, and any object that’s used in living and working spaces. Fixtures, on the other hand, refer to the objects that are secured or attached temporarily to the space. Mirrors, lights, and sinks are some examples.

Selecting the right furniture and fixtures greatly affects the space.

Studies have shown that furniture has a significant psychological impact on the people using them. Their color, design, and utility impact the mood, productivity, and mental health of people.

Unless you’re designing an eccentric room, installing practical and comfortable furniture is as important as finding aesthetically pleasing ones.

Interior designers consider the size of the space, the design goal, color preference, and product quality when choosing the best furniture and fixtures. They’re usually connected with reliable shops that sell quality and durable items.

To create a practical budget, don’t forget to research furniture and fixture costs so you know how much to allocate. 

4. Leave Room for Constructure Fees

Interior design projects will require skilled labor from various professionals such as plumbers, carpenters, and steel workers.

It’ll be impossible to DIY everything when it comes to labor. If you’re already investing in quality materials, why would you cut yourself short on labor?

The right application, installation, and build matters to the overall integrity of the design.

When preparing a budget, don’t forget to research the labor rates in your area when budgeting. You should also take a close look at the size of your space, the intricacy of the design, and the location — these factors will give you a better estimate of labor costs and how many people will work on your space. 

5. Budget for Other Design Elements

Of course, furniture and fixtures aren’t enough to bring life to your space. Other design elements such as paintings, vases, and curtains are examples of common décor that completes a space.

Experienced interior designers know how to curate art and décor that will go wonderfully in various spaces. They can add pieces that can serve as the focal point of your room or add to the ambiance you’re going for.

Depending on the style, good décor comes with different price tags. Control is important here. Set a limit on how much you are willing to spend on other design elements and communicate that to your interior designer.

6. Consult an Interior Designer

It will be impossible to find an exact price tag for your project if you’re just searching online. The best way to get an idea of how much to spend on interior design is to consult an agency or designer directly.

During the consultation, take your time describing your design pegs and the specifications of your space to give the designer a clear picture of what they’ll have to work with. Don’t leave out any important details because that can hinder them from giving you a close estimate.

Remember to inquire about their pricing structures and their experience working on similar-scale projects. You should also ask them if your design requirements and timeline are realistic for your budget.

Ideally, it’s best to work with a local interior designer because that assures you that they know local general contractors and have connections with nearby reliable suppliers. Having them travel to your location and deliver items can add to the costs. To get the most out of your investment, make sure you go through their portfolios to match with the right interior designer.

Interior Design Budget Template

Download Clutch’s budget template for your interior design needs.

Factors that Affect Interior Design Costs

While there is no exact answer as to how much interior design projects should cost, weighing all the key factors can help give you an idea of the final price tag. Knowing these will make it feel less daunting to budget for your project.

Here are variables to consider when preparing a project budget spreadsheet:

• Complexity of the design
• Building type
• Building scale/size
• Project location
• Lighting needs
• Flooring needs
• Expertise and reputation of the interior designer
• Number of construction days 
• Number of construction workers on site
• Construction materials
• Tiles, paint, and/or wallpaper
• Furniture and fixtures
• Art pieces and décor

Interior design is a big investment, but you don’t need to break the bank. You can acquire quality materials and furnishing without spending big bucks.

Budget Wisely for Your Interior Design Project

The bottom line is that your office space shouldn’t be dull and lifeless. Great interior design represents your company's values, brand, and culture. In this age, quality workspaces don’t have to be a luxury, but rather a necessity for optimal productivity.

Don’t be intimidated when budgeting for your interior design project. With proper research and Google Sheets as your best friend, you’ll see that you don’t need to pour in tons of cash to create a sophisticated and enjoyable space.

Maximize your investment as you work with a reliable and experienced designer. Check out Clutch’s rankings for the top interior design agencies. Take a moment to go through their portfolios to see if they’re the right partner for your project.