Trades run late. Your budget shouldn't break.
Renovation payments land on milestones, not calendar dates — the deposit, then framing, then fit-out, whenever each is actually finished. That unpredictability is exactly why so many renovations blow their budget.
A contingency isn't caution. It's closer to the median outcome.
Unlike school fees or utility bills, a renovation isn't paid on a schedule the calendar can tell you in advance. Trades slip, deliveries slip, and the money leaves in a handful of large, irregular chunks whenever each stage completes.
The bigger risk is underestimating the total. When 41% of homeowners exceed their budget and nearly half of those exceed it by more than 10%, a contingency stops being optional caution and starts being the realistic base case.
A Bucket doesn't fix late trades. What it does is show you, at any point, exactly how much of your offset balance is already committed to the project — including the buffer — so a slipping timeline doesn't quietly become an overdrawn budget.
Renovation Bucket calculator
| Month | Balance start | Milestone paid | Balance end | Interest saved |
|---|---|---|---|---|
| Month 1 | $46,000 | $4,600 | $41,400 | $226 |
| Month 2 | $41,400 | — | $41,400 | $214 |
| Month 3 | $41,400 | $13,800 | $27,600 | $178 |
| Month 4 | $27,600 | — | $27,600 | $143 |
| Month 5 | $27,600 | — | $27,600 | $143 |
| Month 6 | $27,600 | $18,400 | $9,200 | $95 |
| Month 7 | $9,200 | — | $9,200 | $48 |
| Month 8 | $9,200 | — | $9,200 | $48 |
| Month 9 | $9,200 | $9,200 | $0 | $24 |
| Month 10 | $0 | — | $0 | $0 |
| Month 11 | $0 | — | $0 | $0 |
| Month 12 | $0 | — | $0 | $0 |
Assumes the full budget plus buffer is in your offset before the deposit falls due, drawn down at each milestone. Milestone percentages are typical but vary by contract — check your own payment schedule.
Setting up a renovation Bucket
Create a Bucket called "Renovation", set your budget and buffer, and update each milestone as your builder confirms dates. Savvy Dollar keeps the committed total current, so your dashboard never shows more as free to spend than the project has left.
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Common questions
Should I keep renovation savings in my offset account?
Yes, if you have one. A renovation fund holds a large balance for months while trades work through milestones, and every dollar reduces the interest charged on your mortgage until each payment is actually due. On a $46,000 fund that is substantial over a build.
How much contingency should I budget for a renovation?
15% is a common starting point, and 20% is defensible on older homes where surprises hide behind walls. Given that 41% of Australian homeowners exceed their budget and nearly half of those by more than 10%, treating contingency as optional is the riskier choice.
How are renovation payments usually structured?
Typically a deposit followed by progress payments tied to completed stages — framing, lock-up, fit-out, completion. The percentages vary by contract but the pattern is consistent: a few large irregular payments rather than regular instalments.
Should renovation savings go in an offset account?
Yes, if you have one. A renovation fund holds a large balance for months, and every dollar reduces your mortgage interest until the moment a milestone falls due. On a $46,000 fund that is a substantial saving over a build.
What happens if a renovation runs over budget?
You either fund the overrun, reduce scope, or stop. The contingency exists so the first option doesn't mean raiding an emergency fund or taking on unplanned debt. Setting it realistically at the start is far easier than finding the money mid-build.
Never mix up the renovation fund money again
Set it up as its own Bucket in under two minutes.
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