If you’re just starting out, our interior design budget template Excel download is a great asset for budget-making — get it now for free! 

As you progress in your interior design career or if you’re already an established designer, check out all the ways software like Houzz Pro can help simplify the budgeting process.

What is an Interior Design Budget?

An interior design budget outlines all the expenses you’ll be incurring for your interior design project to produce your final product. Budgeting fits into the interior design client lifecycle after you’ve confirmed the client’s approval of your estimate and before you’ve purchased all the furnishings, decor, treatments, etc. that will go into it. Your interior design budget will provide a precise account of your expenses so that you can see exactly where money is going to be spent. Check out the interior design budget example above to get a feel for what your budget template can look like.

What’s the Difference Between Top-down and Bottom-up Budgeting?

Top-down and bottom-up budgeting differ in whether or not the actual budget is established before or after sourcing products and resources. In top-down budgeting, the final budget is determined before any sourcing or purchasing so that you know your expenses limit for the project. In bottom-up budgeting, you instead source items piece by piece and build your budget as you go.

Why are Budgets Important in Interior Design?

Interior design budget templates are incredibly important so that you can ensure your projects are making a profit. Budgets help you stay focused on the bottom line before you’ve purchased anything, so you know that the money you’re making won’t exceed the expenses you’re putting into it. With budgets and pricing models closely linked, read our guide on How to Price Interior Design Services to learn more.

What Factors Affect Your Overall Interior Design Budget?

Before you establish your budget, you need to understand the basic scope of your client’s needs. Here are several key areas to consider:

Size of room(s)

The size of each room or room will greatly influence the budget in terms of required furnishings, lighting, floor and/or window treatments, paint, wallpaper and more.

Total # of pieces needed

As some rooms require less pieces to purchase than others, knowing how many items you’ll need to buy to complete the design will be important for determining your budget.

Quality of pieces, including fabric durability and furniture craftsmanship 

Does your client want the highest quality pieces or are they OK with average quality craftsmanship? Are some types of pieces more preferable to your client than others in terms of their quality and durability? Knowing this will be essential for budgeting your interior design project.

Taxes and shipping costs

Don’t forget to add in local taxes and shipping costs into your budget as these will be non-negotiable line items.

Labor and installation fees 

The cost of labor and installation can often be a forgotten expense to include, so make sure to account for these specific time costs and fees.

What Should Be Included in an Interior Design Budget?

The following section will explain what goes into an interior design project budget template to set yourself up for success.

Organization

Creating a well-organized interior design budget template is key to keeping tabs of all your expenses quickly and easily. Organize your projects by room and include relevant subcategories for each space, such as a section for furnishings, decor, treatments, installation fees, etc. If you have a bigger budget focused on pricier pieces, it’s also helpful to order your budget in terms of the price of each item or by having your important “anchor” pieces up top. While it can be challenging to organize budgets for all your projects, using a software that automatically generates budgets as you proceed in your interior design budgeting process can make your work much faster and easier.

Projected Cost, Actual Cost and Balance Sections

In order to best keep your project on budget, you should keep track of your projected cost, actual cost and the total balance for each room of your project and the grand total. The projected cost will account for what you estimate your costs will be while the actual cost will be the final, “real world” amount. The balance section will account for the total amounts.

Item notes

In addition to price, you’ll also want to include details about the items you’re buying including purchase date, manufacturer, any item details such as size specifications, color, etc. as well as a link to the item if sourcing online.

Labor and Professional Installation Fees

If your interior design project will require any type of installation work, painting, new flooring work, lighting fixtures or other items, then make sure to include a section in your interior design budget excel spreadsheet for the appropriate labor and installation fees.

Conclusion

Now that you’ve got the full details, you’re ready to get started with our Excel interior design project budget template. Check out How to Make an Interior Design Invoice + Template to learn more business management tips.

Want to take budgeting to the next level versus manually using the interior design budget Excel spreadsheet? Explore how Houzz Pro’s product sourcing and proposal features can help you streamline and speed up the budget process. We've got loads of other business-boosting features available with our interior design software. Start a free trial to try them for yourself!