How to Create a Realistic Interior Design Budget: 9 Essential Tips
Creating a realistic interior design budget can feel overwhelming—kind of like guessing the number of jellybeans in a jar at a carnival, except the prize is a gorgeous home you actually love. But don’t worry! With the right strategy, you can plan a budget that makes sense for your project (and your wallet) without losing your mind. Here are 10 essential tips to help you budget like a pro.
Design Project Renderings for our “Hollyhock” Project in Palm Springs, CA
1. Start with Your Goals and Priorities
Before diving into costs, get clear on what you want to achieve. Are you tackling a full-home transformation or refreshing a single room? Identify your must-haves—like a high-quality sofa or custom cabinetry—versus your nice-to-haves—like that designer light fixture you’ve been eyeing on Pinterest. Knowing your goals from the start helps you allocate funds more effectively.
2. Create your room layout
You’ll also want to make a list of the items you’ll actually need. Many homeowners think “we can probably do this for ____” but they haven’t written out a list per room of what items will actually need to be purchased. If you want a realistic number, you’re going to need to go room by room and write down what items will be needed per space. And the best way to know what is needed for space? A floor plan.
You’ll want to measure your space, and then use a free online software (or go old school and do this on graph paper!) to figure out not only what will fit, but around what size those items will be. You should end up with a list like this.
Guest bedroom:
-King size bed
-2 nightstands
-2 table lamps
-Rug
-2 Chairs
-Small end table
-Dresser
3. Don't Forget About Decor and Accessories
It’s easy to focus on the big-ticket items and forget about the finishing touches. Decor elements like art, mirrors, plants, and window treatments bring a space to life. These items are often what bring personality and vibrancy to your space and are important!
Examples:
-Bedding
-Pillows (decorative & functional)
-Overhead light fixture
-Art
-Decor
-Vanity
4. Research Average Costs
Interior design costs can vary wildly depending on your location, style, and scope. Take time to research the average costs for furniture, decor, labor, and design services in your area. Pro tip: High-quality, durable items might cost more upfront, but they’re often worth it in the long run (like magic fabrics that survive kid messes and dog hair without a meltdown).
And hey—why guess when you can know? Download our free 2025 Furniture Investment Guide to get a clear picture of what you can expect to spend based on the quality level you're aiming for. It’s the perfect starting point for planning your design budget without the stress and since you’ll have a list from step 1, you can go item by item on the list and write down the average cost so you can add it all up for a realistic total.
5. Consider all costs.
Interior design projects are often split into 4 different parts.
The stuff. Everything you’ll need to furnish and decorate your space. Everything from furniture to art, decor, wallpaper, lighting, flooring, etc.
Labor. When all of your stuff comes in, you’ll need someone to install everything. To build the furniture, wire and hang the lighting, hang the art and draperies, etc. These are costs that homeowners often forget to consider.
Construction. Do you plan to remodel any bathrooms or kitchens? Do you need to change out the flooring or paint for the home or have any repairs done around the home? Not every design project comes with construction, but if yours does, you’ll want to consider these costs.
Design Fees. If you’re planning to hire a designer, architect, landscape architect, etc. you’ll need to consider the costs associated.
These are the 4 categories of costs you’ll need to consider.
Furniture & decor, Installation Labor, design fees, construction fees
Design Project Renderings for our “Hollyhock” Project in Palm Springs, CA
6. Leave Room for Contingencies
Even with the most detailed plan, unexpected costs will find a way to crash the party. We recommend adding a 10–20% contingency fund to your budget. It’s like having an insurance policy for your sanity.
Design Project Renderings for our “Hollyhock” Project in Palm Springs, CA
7. Factor in Quality and Longevity
Cheap furniture might seem like a good deal until your sofa cushions flatten faster than a pancake. Invest in quality materials that can handle your daily life, especially if you have kids, pets, or an affinity for hosting wine nights. Family-friendly, easy-to-clean fabrics and sturdy construction are key to a home that looks great for years.
8. Understand the Impact of Customization
Custom pieces—like built-ins or tailored window treatments—can elevate your design but also increase costs. Decide where customization adds value (like maximizing awkward nooks) and where you can stick to ready-made options without sacrificing functionality.
Design Project Renderings for our “Hollyhock” Project in Palm Springs, CA
9. Track and Adjust as You Go
Finally, keep tabs on your spending throughout the project. Use a spreadsheet, budgeting app, or the back of an old receipt—whatever works for you—to track expenses. Design projects can evolve, and staying on top of your budget helps you make informed decisions along the way.
Bonus Tip: Work with a Pro
Feeling overwhelmed? Hiring an interior designer can make the budgeting process smoother and more predictable. We help you make smart, intentional decisions that work for your family and lifestyle—without the guesswork.
Ready to create a home that works beautifully for your family? Contact us today to get started!
P.S. Don’t forget to grab our 2025 Furniture Investment Guide! This guide will give you average costs of furniture pieces for each room type, based on the quality of furniture you are looking for. This guide does not include labor or renovation costs, as these can vary depending on project location. If you’d like a custom estimate from DAI including labor costs, please book a discovery call with us.