relay Archives

Jun

2025

Which Credit Score Matters the Most?

By Jamie Cattanach | Budgeting & Goals, Credit, relay | Comments Off

If you’re a consumer in the United States who has a credit history, then you probably have a credit score. More than one, in fact.

FICO® Scores are far and away the most widely used — 90% of lenders rely on them to assess a borrower’s creditworthiness. That said, there’s no single credit score that matters the most. Lenders can and do use a variety of credit scores to determine whether to approve your application for credit and what terms to offer you. Whether you’re looking to make a major purchase or focused on building up your credit profile, it’s a good idea to understand the different types of credit scores out there and how to keep tabs on yours.

Key Points

• FICO Scores are preferred by 90% of lenders, while VantageScores are often free on online platforms.

• Payment history significantly affects credit scores, comprising 35% of FICO Scores.

• Credit utilization, making up 30% of FICO Scores, should remain below 30%.

• Consumers can check scores via credit card statements, free websites, or credit bureaus.

• Regular credit report reviews help maintain financial health by correcting inaccuracies.

Types of Credit Scores

You may have noticed that your credit score varies depending on which website you visit. That’s perfectly normal. As we mentioned, anyone with a credit history probably has more than one score.

One reason for this is that the three main credit bureaus — Equifax, Experian, and TransUnion — may each receive slightly different information from lenders. As a result, your score could vary by bureau.

In addition, there are multiple different ways to calculate a credit score based on the information available. That’s why there’s sometimes a gap between your VantageScore® vs. FICO scores.

This can be an important difference to understand, since Vantage scores are often the credit scores available for free through online platforms. You may sometimes see one credit score (your VantageScore) when you get a free credit report, but then be surprised to learn, when you apply for a credit card or loan, that your FICO Score is different.

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Recommended: FICO Score vs. Your Credit Score

How FICO Works

Generally speaking, your FICO Score is calculated based on the following factors and their relative weights:

• Payment history (35%). This reflects how often you’ve made on-time payments on your debt. Late or missed payments or accounts sent to collections can negatively impact your score.

• Amounts owed (30%). This is your credit utilization ratio, or the amount of available credit that you’re using. Ideally, aim to keep this ratio below 30%.

• Length of credit history (15%). This looks at the average length of your credit accounts. Typically, a longer history is a sign to lenders that you have more experience successfully managing your debt.

• New credit requests (10%). When you open a credit account, the lender may do a “hard” credit inquiry, which could cause your score to temporarily drop.

• Credit mix (10%). This refers to the mix of credit types in your portfolio, which may include credit cards, car loans, or other types of credit.

How Experian Works

As one of the three main credit reporting bureaus in the U.S., Experian collects information about your credit accounts and payment history and includes those details in your Experian credit report.

The bureau does make it possible for you to access your FICO Score for free, though it also offers a paid service that provides credit score monitoring for all three bureaus.

How Equifax Works

Equifax is another U.S. credit reporting agency that offers similar services to Experian.

Again, while you’ll likely have a credit report from both Equifax and Experian, the scores may differ slightly based on the information each bureau has collected. It’s worth noting that Equifax also allows you monthly access to your VantageScore credit score based on the agency’s data.

Which Credit Score Bureau Is Best?

There’s no one “best” credit score bureau. All three bureaus collect consumer information and produce credit scores.

When you want to look at your credit report, it’s a good idea to request a copy from each of the bureaus. That’s because lenders may choose to pull your credit report from any one — or all — of them. By checking all three scores, you can be aware of negative information that affects your credit score and have a chance to correct any inaccuracies you see.

Recommended: Why Does Creditworthiness Matter?

How Can You Obtain Your Credit Score?

You have several options when it comes to accessing your credit score. You may be able to see it on your credit card statements or when you bank online. You can use free credit score websites or purchase your score from a credit bureau.

MyFICO offers a free service that allows you to check your FICO Score and receive your Equifax credit report each month. (You can also pay for a plan that includes three-bureau credit report access, identity theft insurance, and more.)

Another avenue to consider: A spending app, which often offers credit scores. Unless otherwise indicated, you’ll likely be seeing your VantageScore credit score.

Remember, credit scores update every 30 to 45 days, so it’s a good idea to check yours every so often.

How Can You Obtain Your Credit Reports?

While your three-digit score is a great way to see how your credit is faring, the best way to fully understand everything in your credit history is to read the full credit report. If you see any information that looks suspicious or incorrect, you can file a dispute directly with the credit bureau to have it removed.

Every American is entitled by law to pull their credit reports from all three bureaus for free once a week via AnnualCreditReport.

What Is a Good Credit Score Range?

FICO Scores range from a low of 300 to a maximum of 850. (That’s right: The starting credit score is not zero.) Here’s how FICO categorizes scores:

• 300 to 579: Poor

• 580 to 669: Fair

• 670 to 739: Good

• 740 to 799: Very good

• 800-850: Exceptional

If your score is lower than you’d like, be aware that it can take some time to build credit.

One great way to build your credit is to try to lower your overall credit card utilization. This means paying down your debt, particularly balances on revolving debt. And because on-time payments count for such a heavy part of the score, keeping up with your bills each and every month can also be a big help.

Finally, try not to sweat every fluctuation. Sometimes, filing a dispute or multiple hard inquiries in a short time frame can ding your score, but those dips tend to be temporary.

The Takeaway

If you have a credit history, then you likely have more than one credit score. So which credit score matters the most? Short answer: Whatever score the lender uses when considering your application for credit. Generally, FICO Scores are used in most decisions, though each lender has its own policies around which scoring model and version to use.

Regardless of the scoring model, staying on top of your bills, paying down debt, and regularly reviewing your credit report can help ensure you’re on firm financial footing.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

Is FICO or TransUnion more accurate?

FICO and TransUnion serve different purposes. FICO is a credit scoring model that uses a proprietary algorithm to calculate credit scores. TransUnion is one of the three major credit reporting bureaus in the United States that collects credit information about consumers from lenders and creates credit reports.

Do lenders look at FICO or TransUnion?

What a lender reviews — whether it’s just your credit score (like your FICO Score) or your complete credit report (like from TransUnion) — usually depends on the type of credit you’re applying for. For smaller lines of credit, like a credit card, they may only check your score. But for larger loans, like a mortgage, they’re more likely to dig into your full credit history.

Why is my FICO score 100 points lower than Credit Karma?

Credit Karma provides its users free access to their Vantage Score, which is calculated using a different algorithm than the FICO Score. If your score on Credit Karma is different from your FICO Score, it’s likely because of the different calculations.

What is a good FICO score?

According to FICO, a “good” credit score falls between 670 to 739. Credit between 740 to 799 is considered “very good,” while credit scores of 800 and above are considered “exceptional.”

Do lenders use FICO or Vantage?

The majority of U.S. lenders use FICO Scores to assess a potential borrower’s creditworthiness. However, a VantageScore is what you’re more likely to see on many web platforms that offer free credit scores.

Photo credit: iStock/tolgart

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Jun

2025

When to Count Your Home Equity as Part of Your Net Worth

When Does Home Equity Count in Your Net Worth?

By Austin Kilham | Budgeting & Goals, Growing Wealth, relay | Comments Off

If you’re like many people, your home is probably your biggest asset, so you might think it makes sense to include it in your net worth. But this may not always be the best idea.

Here’s why: All your assets usually should be tallied as part of your net worth. But some financial advisers argue that the money you’ve invested in your home is different from other assets. If most people were to sell their home and move, they would have to put the funds from the sale toward buying or renting a new home. The home you live in isn’t easily liquidated if you need money to pay for other things.

The specifics of your situation can also determine whether or not to count your home equity in your net worth. And there is no downside to calculating it both ways. Generally, when using tools to tap your home equity, you may want to include your house as part of your net worth. But when calculating retirement savings and in some other situations, it’s a no-go.

Read on to learn more about when home equity counts in your net worth.

Table of Contents

Why Is Knowing Net Worth Important
Calculating Net Worth
When to Include Home Equity in Net Worth
When You Should Not Count Home Equity as Part of Your Net Worth
Tips for Improving Net Worth

Key Points

• Home equity is the difference between the market value of your home and the amount you owe on your mortgage.

• Building home equity can increase your net worth and provide financial stability.

• Home equity can be accessed through a home equity loan or a home equity line of credit (HELOC).

• Using home equity wisely, such as for home improvements or debt consolidation, can be a smart financial move.

• It’s important to carefully consider the risks and benefits of using home equity and consult with a financial advisor.

Why Is Knowing Net Worth Important?

Your net worth will fluctuate over time, but it can always be a valuable way to chart how your finances are going. If your net worth is negative, that means you have more debts than assets. This might encourage you to budget differently or focus more on paying off debt, especially high-interest debt.

If, however, your net worth is positive, that can help you see how you are progressing toward financial goals and what funds you will have available for, say, retirement.

Calculating Net Worth

At its most basic, net worth is everything you own minus everything you owe.

To calculate your net worth, tally the value of all or your assets, including bank accounts, investments, and perhaps the value of your home or vacation home. Then subtract all of your debts, including any mortgage, student loans, car loans, and credit card balances.

If the resulting figure is negative, it means that your debts outweigh your assets. If positive, the opposite is true.

There is no one net worth figure that everyone should be aiming for. Your net worth, though, can be a personal benchmark against which you can measure your financial progress.

For example, if your net worth continues to move into negative territory, you know that it is time to tackle debts. Hopefully, you’ll see your net worth grow, which can give you some idea that your savings plan is working or your assets are increasing in value.

Your home may, strangely, function as both an asset and a liability. Your home equity — the part of the home you actually own — can be an asset. But your lender may still own part of your home. In that case, mortgage debt is a liability.

As you track your home value and other assets to take your financial pulse, you may find that your home is simultaneously your biggest asset and biggest liability.

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When to Include Home Equity in Net Worth

Generally speaking, you may want to include your home as part of your total assets and net worth when you want to leverage the value of the equity you have stored there.

You can tap the equity in your home with a number of financial products. Here’s a closer look:

Home Equity Loan

A home equity loan allows you to borrow money that is secured by your home. You may be able to borrow up to 85% of the equity you have built up. For example, if you have $100,000 in home equity, you may have access to an $85,000 loan.

The actual amount you are offered will also be based on factors such as income, credit score (which may differ among the credit bureaus — say, between TransUnion vs. Equifax), and the home’s market value.

You repay the lump-sum loan with fixed monthly payments over a fixed term.

As with home improvement loans, which are personal loans not secured by the property, you can use a home equity loan to pay for home renovations.

Or you can use a home equity loan for goals unrelated to your house, like paying for a child’s college education or consolidating higher-interest debt.

Just remember that if you fail to repay the loan, the lender can foreclose on your home to recoup its money.

Home Equity Line of Credit

A home equity line of credit (HELOC) is not a loan but rather a revolving line of credit. You may be able to open a credit line for up to 85% of your home equity.

How do HELOCs work? You can borrow as much as you need from your HELOC at any time. Accounts will often have checks or credit cards you can use to take out money. You make payments based on the amount you actually borrow, and you cannot exceed your credit limit. HELOCs typically have a variable interest rate, although some lenders may allow you to convert a portion of the balance to a fixed rate.

HELOCs use your home as collateral. If you make late payments or fail to pay at all, your lender may seize your home.

Traditional Refinance

A traditional mortgage refinance replaces your old mortgage with a new loan. People typically choose this path to lower their interest rate or monthly payments.

They may also want to pay off their mortgage faster by changing their 30-year mortgage to a 15-year mortgage, for example, reducing the amount of interest they pay over the life of the loan.

How do net worth and home equity come into play? One important metric lenders use when deciding whether you qualify for a mortgage refinance is your loan-to-value ratio (LTV), how much you owe on your current mortgage divided by the value of your home.

The more equity you have built in your home, the lower your LTV, which can help you secure a refinanced loan and positively influence the rate of the loan.

Another option: A cash-out refinance vs. a HELOC.

Cash-Out Refinance

A cash-out refinance replaces your mortgage with a new loan for more than the amount of money you still owe on your house.

The difference between what you owe and the new loan amount is given to you in cash, which you can use to pursue a number of financial needs, such as paying off debt or making home renovations.

Your cash-out amount will typically be limited to 80% to 90% of your home equity, and interest rates are typically a little bit higher due to the higher loan amount.

Reverse Mortgage

A home equity conversion mortgage, the most common kind of reverse mortgage, allows homeowners 62 and older to take out a loan secured by their home.

Borrowers do not make monthly payments. Interest and fees are added to the loan each month, and the loan is repaid when the homeowner no longer lives there, usually when the homeowner sells the house or dies, at which point the loan must be paid off by the person’s estate.

When You Should Not Count Home Equity as Part of Your Net Worth

There are a few instances when it doesn’t make sense to include your home in your net worth, or you aren’t allowed to.

When Calculating Your Retirement Savings

If you’re using your net worth to get a sense of your retirement savings, it may not make sense to include your home, especially if you plan to live there when you retire.

Your retirement savings represent potential income you will draw on to cover your living expenses. Your home does not produce a stream of income on its own, unless you tap your equity using one of the methods above.

If You’re Applying for Student Aid

A family’s net worth can have an impact on eligibility for federal student aid. The more assets a family has, the more that need-based aid may be reduced.

However, the equity in a family’s primary residence is a nonreportable asset on the Free Application for Federal Student Aid (FAFSA®). Most colleges use only the FAFSA to decide aid.

Several hundred colleges, usually selective private ones, use a form called the CSS Profile, which does ask applicants to report home equity, though a number of schools, such as Stanford, USC, and MIT, have moved to exclude home equity from their considerations for aid.

When Becoming an Accredited Investor

An accredited investor may participate in certain securities offerings that the average investor may not, such as private equity or hedge funds. Accredited investors are seen to be financially sophisticated enough, or wealthy enough, to shoulder the risk involved with such investments.

To become an accredited investor, you must have earned more than $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, or you have a net worth over $1 million. However, you cannot include the value of your primary residence in your net worth in most cases. (An exception worth noting: There are certain FINRA licenses that allow a person to become an accredited investor independently of one’s finances.)

Tips for Improving Net Worth

If you are looking to build your net worth, you might try these tips:

• Rein in your spending. If your net worth is not rising as you would like, you might assess if you are spending too much. You might be shopping out of boredom, trying to keep up with your peers (aka, FOMO or Fear of Missing Out), or be experiencing what is known as lifestyle creep, when your expenses rise along with your income.

• Deal with your debt. Having debt, especially high-interest debt like the kind you can incur with credit cards, can make it hard to grow your net worth. If you are struggling to get on top of debt, you might look into debt consolidation options or working with a low-cost or free credit counselor.

• Consider automating your savings. Many financial experts advise that you “pay yourself first” and immediately transfer some funds into savings when you get paid. In one popular budgeting method, the 50/30/20 Rule, it’s recommended that 20% of your take-home pay go toward savings and debt. In addition, you would probably want that money to grow, whether that means putting it in a high-yield savings account or investing in the market.

The Takeaway

Whether or not you include your home in your net worth will depend largely on what you’re trying to accomplish. If you plan to tap your equity, then it is an important figure to include. But it’s not always included when it comes to things like student aid or retirement income.

Having a handle on your home equity and keeping it growing is always worth the effort and hard work. The more it grows, the more it can contribute to your long-term financial goals.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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May

2025

Wedding Budget Breakdown: Line Item by Line Item

How to Plan a Dream Wedding on a Budget

By Alene Laney | Budgeting & Goals, Family Finances, relay | Comments Off

To pull off a dream wedding on a budget can require smart budgeting and planning. You’ll want to prioritize key elements and think about what you can live without or do for a minimal price.

Here, you’ll learn more about developing and sticking to a budget, including cost-cutting tips that will make the whole process easier on your wallet and your peace of mind.

Key Points

• Prioritize wedding elements to avoid overspending and achieve a dream wedding without debt.

• Average wedding costs vary by location, with a median cost of $10,000 and a national average of $36,000.

• When creating a budget, start with major wedding expenses, like venue, catering, and music.

• Avoid common budgeting mistakes like underestimating costs and not saving enough.

• To save money, try limiting the guest list and tackling DIY projects.

Average Cost of a Wedding

The average cost of a wedding depends on several factors, including how you do the math. In 2025, the national figure was $36,000, according to wedding registry site Zola. Based on a recent SoFi survey of 1,000 people, however, the median cost of a wedding is $10,000, which may be a more accurate gauge of how much people really spend.

As you might expect, individual figures can vary greatly: If you get hitched in the grand ballroom of a hotel in Chicago with sweeping views of Lake Michigan, it’s going to be much pricier than gathering with just immediate family and your best friends to exchange vows by that same lake.

In real life, the average cost of a wedding varies widely based on location. In Indianapolis, wedding expenses total just under $25,000, according to The Knot. Over in San Francisco, the big day exceeds $50,000. Worth noting: These figures represent average wedding costs, which can be misleading. Just one lavish wedding, for example, can skew the average to be higher than what most people actually paid, which is why a median price tag can better reflect how much you’ll actually spend.

Understanding Your Financial Health

As you embark on financing a wedding, it can be wise to first look holistically at your financial wellness. You want your wedding to be the happiest day of your life, but not one that sinks you into debt that challenges your long-term financial plans.

Think carefully about how much you have saved, what family and friends might contribute, and whether options like a wedding loan would make sense for you. Also factor in your other upcoming money needs. If you are planning on buying a house, you may want to have a lower-cost celebration and instead funnel any cash gifts into a down payment fund.

Check your score with SoFi

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Major Costs to Include in Your Wedding Budget Breakdown

Next, consider this breakdown for a major, $30,000-plus wedding with all the bells and whistles. While the median cost of a wedding is considerably lower, this will give you an idea of how expenses may be broken down. Most couples go all-in on just one or two priorities for their big day.

Average Wedding Costs
Venue	$12,200
Live Music	$4,500
Cost of wedding rings	$2,900
Wedding photographer	$2,900
Flowers	$2,700
Videographer	$2,300
Wedding Dress	$2,100
DJ	$1,700
Invitations	$520
Wedding Cake	$540
Favors	$460
Hair and Makeup	$290
Catering	$80/person

Source: The Knot

Working with an online wedding calculator can help you develop and then tweak your budget.

Remember, these are the costs incurred by and for the bride and groom. The groomsmen and bridesmaids will incur their own costs for being in the wedding.

How to Determine What You Can Afford

No one is born knowing how to plan a wedding. To set your wedding budget, start by asking yourself a few questions:

• How much of your savings are you willing to use for your overall wedding budget?

• Are your parents or other relatives planning to contribute financially?

• Are you considering taking out a personal loan to help cover costs?

• If you are using savings, how long will it take to save the amount of money you need?

• Is a wedding really worth the amount of money you want to spend on it?

• Should a one-day event take priority over other life goals, like traveling together, starting a family, or owning a home?

Getting clarity on these answers will help you come up with a starting number.

Recommended: What Are the Tax Benefits of Marriage?

Wedding Budget Allocation Tips

Budget allocation involves assigning a percentage of your overall fund to each category. Use the percentages below to get a rough idea of how much you can pay for your venue, catering, etc. According to The Knot, a typical budget allocation looks like this:

Wedding Budget Allocation
Venue and rentals	27%
Catering	24%
Photographer and videographer	10%
Floral design and decor	9%
Music	8%
Couple’s attire and beauty	6%
Wedding rings	5%
Wedding planner	4%
Guest entertainment	3%
Transportation	2%
Stationery	1%
Officiant	1%

You may have to factor in alternative or multiple options for some categories, such as live music, DJ, or guest entertainment. In combination with the average wedding costs table above, you should be able to project your total budget without any major surprises.

Common Wedding Budget Mistakes to Avoid

Here are a few of the pitfalls to avoid if you are planning a dream wedding on a budget. Consider these as you work on your wedding budget breakdown.

• Not budgeting enough. Many couples underestimate the amount of money they’ll spend on a wedding. When there’s no plan, everything becomes a priority and you’ll go through money faster than you can imagine. Be sure to make both a wedding budget and a savings plan to make it happen.

• Not communicating with loved ones about the budget. If you have parents or other loved ones helping to cover expenses, be sure to have a conversation with them to avoid overestimating their contribution.

• Not saving long enough. Once you know how much you’ll need, be realistic about how long it will take you to save that money. You may want to consider pushing back your wedding date to have enough time to save for it. (Too late to save up? Learn about wedding financing options.)

• Going into debt. Many couples put wedding expenses on a credit card. If the balance isn’t paid off within the month, you’ll end up paying high interest rates on top of what you budgeted.

• Forgetting to budget for unexpected costs. Surprise bills always come up. Keep a small amount reserved for unexpected wedding expenses.

• Not keeping track of your spending. With wedding expenses, it’s easy to lose track of which bills you’ve paid. A money tracker can help you stay organized.

8 Cost-Saving Tips for a Budget-Friendly Wedding

If your list of wedding expenses far exceeds your budget, don’t panic. Trimming your costs isn’t so hard if you know how to go about it. These ideas can help.

1. Limit Your Guest List

Consider shortening your guest list to include only close friends and family members. This can be a blessing in disguise for certain types of weddings. For instance, a destination wedding is especially difficult to coordinate for more than 100 people.

2. Find a Free or Low-Cost Venue

The wedding venue is often your biggest expense — unless you move the ceremony outside or to a private home. Depending on the location, you can reserve a park pavilion for around $100. A permit to hold a wedding ceremony at a national park is around a few to several hundred dollars. Forgoing a fancy venue puts a lot of money back in your pocket.

Recommended: Should I Sell My House Now or Wait?

3. Buy Second-Hand or Rent Decor

Utilizing a few previously owned items is a real budget saver.

• Wedding decor. Gently used decor is often sold online at a fraction of the cost. Keep your eye on Craigslist, Facebook Marketplace, eBay, and Etsy for items that work with your theme.

• Wedding dress. A wedding dress that costs thousands brand-new can be thrifted for a few hundred dollars. If you really want to save money on wedding attire, consider borrowing a dress from a good friend or family member.

4. Ask Friends and Family to Gift Their Skills

Do you have a photographer in your network? What about an aspiring caterer or florist? While it’s worth paying for their skills, you can also try exchanging something of value. Babysitting for busy parents is always a winner.

You can also ask for services in lieu of a gift. Tactfully articulate your desire to start your new life on a budget, while respecting their need to earn a living. If they say they can’t do it, don’t push.

5. DIY Whenever Possible

Many details that cost a fortune to outsource may be pulled together with the help of friends and family.

• Centerpieces. Your table decor can be made ahead of time by the wedding party or a group of aunties.

• Invitations. It’s so easy to make your own wedding invitations. Even if you’re unskilled, you can use online tools like Canva to create your design. Save the result as a photo file for cheap printing. Image files cost as little as 10 cents to print. Compare that to formal invitations that typically cost several dollars each to print.

• Catering. Know someone who makes an incredible main dish or specializes in smoked barbecue? They may be willing to help out for little more than the cost of groceries and supplies.

• Flowers. Making your own bouquet from flowers sold at the farmer’s market or grocer is an easy way to save a lot of money. Check out a YouTube video tutorial, and you’ll be on your way.

6. Use a Faux Wedding Cake

A faux wedding cake is one that is made just for appearance. It’s frosted to look like a real cake but underneath it’s just Styrofoam or cardboard. It can provide a stunning bit of decor for a wedding at prices of $25 and up. Then you can serve a simple, delicious sheet cake as dessert.

7. Time Your Wedding Strategically

Wedding season traditionally runs from May to October. This is when demand is highest — and prices too. If you can plan a wedding for the off-season (say, December or March), demand and prices are lower. You may be able to get the venue you want for the price you want.

8. Compare Vendors and Negotiate

Do shop around. It may be tempting to use the first vendor you meet if you like them or opt for the person your best friend says is fabulous, but it is really worthwhile to get a couple of bids and compare. You could save a bundle.

The Key to Having Your Dream Wedding Within Budget

Your dream wedding doesn’t have to spawn a nightmare budget. Be mindful of what you really want and what you can really afford. If a backyard potluck is all it takes to make you happy, then don’t worry about what other people say you “should” do.

As you move ahead with your plans, go ahead and feel great about sticking to a budget that frees up funds for other purposes, like your first home or a lengthy honeymoon. Because saving for a dream wedding is just the first step in a couple’s life together.

The Takeaway

Budgeting for a wedding can help you start married life on the right foot financially. First, find out the average costs in your area for major wedding expenses — venue, catering, music, photography. Then determine how much money you can pull together from family, your current savings, paychecks you’ll receive before the big day, or investigate personal loan options.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

What is the average cost of a wedding?

There are a couple of different ways to look at the typical price tag. The average cost of a wedding is currently $36,000, but the median is $10,000, which may give you a more accurate idea of the price most people spend.

How much should I budget for a 100-person wedding?

While the average per-person cost of a wedding is currently $284, it’s up to you to determine how much you are comfortable spending. You can lower costs by having a wedding at home, in a backyard, or park. You might have friends and family prepare food, or have a cocktail party reception vs. a sit-down, five-course dinner.

What are some ways to reduce wedding costs?

Ways to reduce wedding costs include getting married in the off-season, avoiding pricey venues, inviting fewer guests, DIY-ing flowers and food, and renting or borrowing anything from a wedding dress to decor.

How can I estimate the costs of my wedding?

There are a number of good ways to estimate the costs of a wedding. You can develop a budget based on the usual breakdown of costs for a ceremony and celebration, you might research local costs from vendors, or use an online calculator tool.

What are different ways I can pay for my wedding?

Some options for paying for a wedding include saving for it (or dipping into your savings account), seeking funding from family and friends, or taking out a personal loan.

What is a low budget for a wedding on average?

For a low-budget wedding where no meals are provided for guests, plan on spending a few hundred dollars. At the very least, you need to pay a fee for a marriage license and an officiant. You can wear something you already have, eat a potluck meal, and take your own pictures — and it can still be magical.

Photo credit: iStock/Prostock-Studio

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOPL-Q225-030

May

2025

2023 Wedding Cost Calculator Table with Examples

2025 Wedding Loan Calculator to Estimate Cost of a Wedding

By Kim Franke-Folstad | Budgeting & Goals, Family Finances, relay | Comments Off

The average wedding currently costs $36,000, which is certainly a significant investment. Whether you plan to spend that much, less, or more, a wedding cost calculator can help you manage the price tag and stay on budget.

Read on for a breakdown of the costs you can expect as you prepare for your big day.

Table of Contents

What Does the Average Wedding Cost
How the Calculator Estimates Wedding Costs
Wedding Cost Estimate Example
The Takeaway

Key Points

• A wedding cost calculator helps estimate the total cost of a wedding based on various factors.

• It takes into account factors such as location, guest count, venue, catering, attire, and other expenses.

• The calculator provides an itemized breakdown of costs and allows for customization based on personal preferences.

• A calculator can help couples create a realistic budget and make informed decisions about their wedding expenses.

• Using the wedding cost calculator can help reduce stress and ensure financial preparedness for the big day, which can typically cost an average of $36,000.

What Does the Average Wedding Cost?

As of 2025, the average wedding cost is $36,000 according to Zola, the wedding registry site. However, according to SoFi’s latest research, the median wedding cost, which may give a more accurate figure, was $10,000.

Of course, each wedding and its costs will vary. For instance, one couple might go all-in on a destination wedding with all the trimmings, held at a five-star tropical resort, while another might hold a backyard ceremony with cake and a friend’s band providing the music. Prices will vary with location, the number of guests, and many other factors. Currently, the typical cost per person of a wedding is $284, according to The Knot, a wedding website.

Check your score with SoFi

Track your credit score for free. Sign up and get $10.*

How the Calculator Estimates Wedding Costs

A wedding cost calculator uses average wedding costs to help couples break down the expenses they can expect to encounter as they plan their wedding. This budgeting tool can assist couples and their families in prioritizing how they want to spend their money. (Is a designer dress a must? Is a buffet or sit-down dinner a better choice? How many guests can you really afford?)

You also can use a wedding calculator/budget as a checklist to ensure you’ve covered all the details, so there aren’t any surprises (or unexpected wedding expenses) as you close in on the big day.

Recommended: Is It Smart to Finance a Wedding?

Wedding Cost Estimate Example

Until you start making calls and getting price quotes, it will be challenging to get even a rough estimate of how much your wedding will cost in total. But the sooner you start filling in some of the blanks on your budget, the sooner you’ll be able to prioritize where you want your money to go — and get a better idea of what the final bill will be.

Here’s an example of what a couple trying to determine a budget between about $14,000 and $24,000 and a guest list of 50 might come up with.

Depending on your situation, you might have saved enough to pay for the wedding yourselves, have received funds from family and friends, or be looking into a personal loan that can be used to finance a wedding.

	Cost	Percent of Budget
Invitations	$420	3%
Ceremony:	$560	4%
Ceremony Venue	$310
Officiant Fee	$250
Reception:	$6,020	43%
Venue with Wine Bar	$3,000
Buffet Dinner	$2,220
DJ with Equipment	$800
Bride’s Costs:	$1,820	13%
Dress	$1,070
Alterations	$100
Shoes	$200
Jewelry	$200
Hair & Makeup	$250
Groom’s Tuxedo Rental with Shoes & Tie	$420	3%
Cake	$560	4%
Flowers:	$2,100	15%
Bride’s Bouquet	$300
Bridesmaids’ Bouquets (2)	$200
Boutonnieres for Wedding Party (5)	$100
Corsages for Family (6)	$200
Flowers for Ceremony & Reception	$1,300
Photos	$1,540	11%
Limo Rental	$560	4%

The Takeaway

A wedding is a cause for celebration, but the costs can be significant. As of 2025, the average cost has been tallied as $36,000 and the median at $10,000. You can estimate and then set your budget, using a wedding cost calculator to make the math part a snap. Depending on your specific situation, you might then decide to finance the cost, perhaps with a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

What is a realistic budget for a wedding?

A realistic wedding budget will be different for every couple. A wedding might cost $10,000 or several multiples of that, depending on the size of the wedding, the location, and other factors.

Is $10,000 a reasonable wedding budget?

Currently, $10,000 is the median price of a wedding in the U.S. You may have to be pickier about splurges than a couple with more to spend, but by setting your priorities early, you can succeed in sticking to your $10,000 wedding goal.

How do I pay for a wedding I can’t afford?

There are a few different ways you can pay for a wedding if you don’t have enough cash in the bank. One popular option is to take out a personal loan to pay for wedding expenses. Another is to apply for a credit card with a 0% introductory interest rate, which will allow you to pay off the balance interest-free for up to 18 months. Or you might consider waiting until you’ve saved enough to pay all your costs without borrowing.

What is the average cost of a wedding in 2025?

The average cost of a wedding as of 2025 is $36,000, according to the wedding registry site Zola, while SoFi research found the median price to be $10,000, which may be a more accurate estimate.

How much does a 100-person wedding cost?

According to the wedding site The Knot, a typical wedding will cost $284 per person in 2025. If you multiply that by 100, you’ll find that a 100-person wedding could cost $28,400.

What uncontrollable factors affect the total cost of a wedding?

There are several uncontrollable factors that can affect the total cost of your wedding. The cost of living in the area where you will marry can be a key contributor. For instance, the price tag in a major city will likely exceed that in a small town. Also, venue rentals, catering, and flowers can vary with location and season and the style of wedding you have. You may not be able to get these for a super-cheap price.

Photo credit: iStock/Arisara_Tongdonnoi

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Apr

2025

How Much Is My House Worth? — Take the Quiz

By Janet Siroto | Home Ownership, mortgage, relay | Comments Off

Your house is much more than a home — it’s likely one of the biggest purchases you’ll ever make, with a value that makes up a significant proportion of your (and most people’s) net worth. As such, you’ve probably wondered from time to time what your home is worth.

Determining the answer is not as simple as referring back to your sales agreement or mortgage papers. What you paid for your house when you purchased it merely reflects what your house was worth to you — and the real estate market — at a specific point in time.

In reality, housing values are dynamic, and they fluctuate based on a number of factors. Some things, such as keeping your house in good repair, are within your control. Other external influences, such as the market, mortgage rates, and other considerations, can also affect the value of your home.

Here, we’ll take a close look at how this works, and answer questions like:

• How much is my house worth?

• What factors determine my home’s value?

• How can I increase my home’s value?

First, take our “how much is my house worth” quiz to get an overview of what value your home holds.

Next, delve into the topic more deeply with these insights.

Home Value Estimator Quiz

Key Points

• The main factors influencing home value are neighborhood desirability, house specifications, condition, and economic variables.

• Online calculators estimate home value using your address and public data like recent sale prices, tax assessments, and market trends.

• Understanding market dynamics can help you predict changes to your property’s value and guide you in financial decisions.

• Renovations that lead to a high return on investment (ROI), such as kitchen and bathroom updates, can significantly boost a home’s value.

• Professional opinions from appraisers and real estate agents offer precise home worth estimates, since their local knowledge will help them consider relevant conditions and property specifics.

Estimating the Value of Your House

Knowing how much your house is worth can improve your money mindset by helping you understand where you are financially. There are a number of ways you can determine the estimated value of your house.

• Online calculators. The easiest and fastest way to answer the question, “How much is my house worth?” is probably to use an online home valuation calculator. These tools provide a ballpark estimate of the value of your home based on your address. Such estimates typically use publicly available information, including average home sale prices in your area, property tax assessment information, market trends, and other data.

• Market dynamics. Once you have a rough estimate of your property’s worth, you can use other cues about the housing market in your area to gain more insight. This might include such factors as sales and mortgage trends, which can give you a sense of whether your property value is likely to increase, decrease, or remain stable. For instance, during times of rising mortgage interest rates, consumer demand might wane as it becomes more expensive to borrow money.

• Professional opinions. A professional appraiser or real estate agent can also help you get a more precise estimate of what your house is worth. An appraiser will consider both the local housing market and the unique characteristics of your property when creating your home appraisal.

Real estate agents, meanwhile, will typically conduct a comparative market analysis (also called a comp or CMA). This is an estimate based on actual data from recently sold homes that are most similar to yours.

If you are looking to sell, you may want to consider getting a comparative market analysis from several different real estate agents to help you assess their knowledge of and viewpoint on the local market before you commit to one. Understanding the various criteria real estate agents use to determine listing prices can also help you to get an accurate picture of what your house is worth.

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Track your credit score for free. Sign up and get $10.*

Recommended: What Hurts a Home Appraisal?

A Home’s Worth: 3 Factors to Consider

Every house is unique — but the factors used to determine property value are fairly consistent.

Neighborhood: There’s a good reason why “location, location, location” is one of the most popular mantras in real estate. The same home, in the exact same condition, will fetch different prices depending on where it is. Proximity to desirable schools, shopping, public transportation, and other resources and infrastructure can increase the desirability of a neighborhood and thus the value of the home. Safety considerations, such as crime rates, sidewalks, and traffic signals, can also impact house values.
House specifications: Attributes such as the size of your lot, square footage, age of your home, number of bedrooms and bathrooms, parking space, and updated mechanical systems are among the criteria buyers will typically consider. Agents may factor these in while developing a comparative marketing analysis.

Also, the style of your house and the amenities can matter. Does it have a fabulous family room, a spa-style bathroom, skylights, or a pool? That can lift the value.

House condition: Well-maintained houses with high curb appeal can typically fetch better prices than run-down fixer-uppers. As such, your home’s condition is probably the most easily controlled aspect of its value.

To evaluate the condition of your home, take stock of any repairs, both major and superficial; any upgrades such as premium kitchen appliances; and any renovations you may have performed.

There are additional factors outside of your control that will affect the value of your home — though these may be less significant if you are not imminently considering selling.

For example, the state of the economy and mortgage rates may dictate others’ appetite for real estate purchases, as well as how much they are willing to spend. At press time, mortgage interest rates had been slowly trending downward for a significant period of time, remaining under a fairly favorable 7.0%.

That trend could change, and rates may begin rising in the case that the Federal Reserve decides it needs to offset inflation’s impact on consumers. This sort of move’s impact on lenders can cause a softening of the housing market, or a lowering of prices, since it’s more expensive to borrow money.

Seasonal fluctuations such as holidays and weather can also affect home purchasing patterns. In addition, spring has often been looked at as the prime selling season, when families hope to find a new home and get settled before the start of the next school year.

Recommended: Should I Sell My House Now or Wait?

Increasing the Value of Your Home

Though there are some factors that may be out of your control (such as inflation and its impact), there are things you can do to increase the value of your home. If you are considering selling soon, staging your house or making small improvements, such as tidying your garden, can go a long way toward appealing to buyers — without a big financial investment.

But if you are considering investing in renovations and upgrades, it is helpful to know which will deliver the greatest returns. An online calculator can compare different projects to determine how various home improvements impact your home’s value. You might be able to finance such improvements with a home equity line of credit (or HELOC).

Recommended: Does Net Worth Include Home Equity?

Why Your Home Value Matters

If you are considering selling your house, “How much is my home worth?” is likely one of the first things you’ll wonder about. But even if a move isn’t something you are considering right now, there are other reasons why it might be important to know the actual value of your home.

• Relocation plans. For those considering relocating, getting a reliable estimate of how much your house is worth will inform the amount you can afford to spend on your next home. As taxes, real estate agent commissions, and some other fees will be based on the actual sale price of your house, this valuation will also help you to estimate some of your moving costs.

• Financial planning. Even if you aren’t planning to move, it can be wise to know your house’s value for another reason. As one of the greatest assets in many people’s financial portfolios, your home’s worth can play a helpful role in guiding long-term money planning, including retirement and estate planning.

If these things seem a long way off, there are immediate benefits to being informed about your home’s worth, too.

• Property taxes. Your property tax bill is based on the market value of your house and may change from year to year, based on your municipality’s estimate of its worth as determined by a government assessor. A reliable estimate of how much your house is worth can help you to identify discrepancies in the assessed value. If you believe there is an error, you can file an appeal in an attempt to get your property tax bill reduced.

• Homeowners insurance. Having an accurate estimate of the value of your home is also important for obtaining appropriate insurance coverage. If your estimate is too low relative to the actual value of your home, you run the risk of being underinsured in the event of a claim. Too high, and you’re paying for coverage you don’t need.

• Equity considerations. Your home’s value can also help you to access money to pay for home improvements, a financial emergency, or other needs that may arise. If the current value of your home is more than it was at the time you purchased it, you may be able to tap into that increased value with, say, a HELOC or cash-out mortgage refinance.

Home Improvements and Your Mortgage

Even if you’re not looking to sell, adding value to your home may result in savings in the near term. This can be especially true for those who are paying private mortgage insurance (PMI).

• Typically, buyers who purchase a home with less than 20% down are required to pay for PMI — a fee that is based on a percentage of your total mortgage.

• The amount of equity in your home can be determined by subtracting what you owe on your house (or your mortgage principal) from the current total value of your home. If your property value has increased, you have more equity than when you purchased your home.

• If the increase in your property value brings your equity over the 20% threshold, you can ask your mortgage loan servicer to cancel the PMI. That, in turn, will save you money every month.

The Takeaway

Understanding how much your house is worth is an important fact. Your house is a major investment, and knowing its current value can help you in a variety of ways, whether or not you are planning on selling it. Even if you are staying put, knowing its worth could help you make sure your insurance is keeping pace with its price, open the door to a home equity loan, or perhaps lower an assessment.

If you’re ready to find out your property’s value, SoFi’s money tracker app can help. Our property tracking tool can help you learn your home’s worth. It can help you know when more insurance is needed, how much renovations would cost and financing options, and what you might be able to save by refinancing your loan.

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