Jan
29
2026
A man looks at his computer, reviewing stock market fluctuations in his financial portfolio.

Should You Pull Money Out of the Stock Market?

By | Growing Wealth, invest, Investing | Comments Off on Should You Pull Money Out of the Stock Market?

When markets are volatile, and you start to see your portfolio shrink, there may be an impulse to pull your money out and put it somewhere safe — but acting on that desire may actually expose you to a higher level of risk. In fact, there’s a whole field of research devoted to investor behavior, and the financial consequences of following your emotions (hint: the results are less than ideal).

A better strategy might be to anticipate your own natural reactions when markets drop, or when there’s a stock market crash, and wait to make investment choices based on more rational thinking (or even a set of rules you’ve set up for yourself in advance). After all, for many investors — especially those with longer time horizons — time in the market often beats timing the stock market. Here’s an overview of factors investors might weigh when deciding whether to keep money in the stock market.

Key Points

•   Acting on emotions during market volatility may expose investors to higher risk and potentially lead to missed opportunities.

•   Time in the market often beats timing the market, especially for investors with a longer time horizon.

•   Legitimate reasons to sell investments include reaching a financial goal, needing cash for a near-term expense, or a change in an investment’s fundamentals.

•   Selling based on fear can result in locking in losses and missing potential market rebounds.

•   Alternatives to selling everything include rebalancing a portfolio, reviewing diversification, and reassessing long-term asset allocation.

Why Market Volatility Can Be So Stressful

An emotion-guided approach to the stock market, whether it’s the sudden offloading or purchasing of stocks, can stem from an attempt to predict the short-term movements in the market.

This approach is called timing the market. And while the notion of trying to predict the perfect time to buy or sell is a familiar one, investors are also prone to specific behaviors or biases that can expose them to further risk of losses.

When markets experience a sharp decline, some investors might feel tempted to give in to FUD (fear, uncertainty, doubt). Investors might assume that by selling now they’re shielding themselves from further losses.

This logic, however, presumes that investing in a down market means the market will continue to go down, which — given the volatility of prices and the impossibility of knowing the future — may or may not be the case.

Focusing on temporary declines might compel some investors to make hasty decisions that they may later regret. After all, over time, markets tend to correct.

Likewise, when the market is moving upwards, investors can sometimes fall victim to what’s known as FOMO (fear of missing out) — buying under the assumption that today’s growth is a sign of tomorrow’s continued boom. That strategy is not guaranteed to yield success either.

The Case for Staying Invested: Time in the Market

Whether you should sell your assets and pull money out of the market will depend on an investor’s time horizon, or, the length of time they aim to hold an investment before selling.

Many industry studies have shown that time in the market is typically a wiser approach versus trying to time the stock market or give in to panic selling.

One such groundbreaking study by Brad Barber and Terence Odean was called, “Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors.”

It was published in April 2000 in the Journal of Finance, and it was one of the first studies to quantify the gap between market returns and investor returns.

•   Market returns are simply the average return of the market itself over a specific period of time.

•   Investor returns, however, are what the average investor tends to reap — and investor returns are significantly lower, the study found, particularly among those who trade more often.

In other words, when investors try to time the market by selling on the dip and buying on the rise, they may actually lose out.

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The Biggest Risk of Selling: Missing the Market’s Best Days

By contrast, keeping money in the market for a long period of time can help cut the risk of short-term dips or declines in stock pricing. Staying put despite periods of volatility, for some investors, could be a sound strategy.

An investor’s time horizon may play a significant role in determining whether or not they might want to get out of the stock market. Generally, the longer a period of time an investor has to ride out the market, the less they may want to fret about their portfolio during upheaval.

Compare, for instance, the scenario of a 25-year-old who has decades to make back short-term losses versus someone who is about to retire and needs to begin taking withdrawals from their investment accounts.

And by staying invested, investors will experience both downturns and upswings. If they do sell, though, they’d have locked in their losses and could miss out on a potential market recovery.

3 Legitimate Reasons to Sell Your Investments

There are some reasonable situations in which an investor might sell their investments and walk away from the markets. Those could include the following.

You’ve Reached Your Financial Goal

If you’ve reached your financial goal, whatever that is, you may very well sleep better at night by taking your money out of the market and holding cash, though some investors may want to keep at least some money invested in one way or another. Again, this depends completely upon whether you’ve reached your goal, and don’t have any others that you may be working toward.

You Need to Cash for a Near-term Expense

If you need some cash to make a big purchase like a home or a vehicle, or maybe even for an emergency, you could consider the possibility of selling some of your investments. This may set you back a bit in reaching your goals, but the more immediate need may be more pressing.

The Investment’s Fundamentals Have Changed

It may also be time to sell if an investment’s fundamentals have changed. For instance, if you own several shares of Stock X, and Stock X’s revenue has taken a large dip for several consecutive quarters due to its products losing market share, it may be time to reallocate. There can be many reasons that could affect the investment’s fundamentals, and any one of them could be cause to sell.

The Downsides of Selling Based on Fear

There are a few disadvantages to pulling cash out of the market during a downturn.

You Could Lock in Your Losses

First, as discussed earlier, there’s the risk of locking in losses if you sell your holdings too quickly. It’s as simple as that: Selling your investments based on an emotional, fear-based reaction to the markets could mean you lock in a negative return.

It’s Nearly Impossible to Time the Market Correctly

While you could lock in your losses, you could, again, miss a potential rebound as well. Locking in losses and then losing out on gains basically acts as a double loss. When you realize certain losses, as when you realize gains, you will likely have to deal with certain tax consequences.

And while moving to cash may feel safe, because you’re unlikely to see sudden declines in your cash holdings, the reality is that keeping money in cash increases the risk of inflation.

Alternatives to Selling Everything

Here’s an overview of some alternatives to getting out of the stock market:

1. Rebalance Your Portfolio

Investors could choose to rotate some of their investments into less risky assets (i.e,. those that aren’t correlated with market volatility). Gold, silver, and bonds are often thought of as some of the safe havens that investors first flock to during times of uncertainty.

By rebalancing a portfolio so fewer holdings are impacted by market volatility, investors might reduce the risk of loss.

Reassessing where to allocate one’s assets is no simple task and, if done too rashly, could lead to losses in the long run. So, it may be helpful for investors to speak with a financial professional before making a big investment change that’s driven by the news of the day.

Sometimes, astute investors also choose to rebalance their portfolio in a downturn — by buying new stocks. It may be possible — if challenging — to profit from new trends that sometimes emerge during a financial crisis.

It’s worth noting that this investment strategy doesn’t involve pulling money out of the stock market, it just means selling some stocks to buy others. Also, for newer investors or those with low risk tolerance, attempting this strategy might not be a desirable option.

2. Review Your Diversification

Instead of shifting investments into safe haven assets, like precious metals, some investors prefer to cultivate a well-diversified portfolio from the get-go.

In this case, there’d be less need to rotate funds towards less risky investments during a decline, as the portfolio would already offer enough diversification to help mitigate the risks of market volatility.

3. Reassess Your Long-term Asset Allocation

During downturns, it could be worthwhile for investors to examine their asset allocations — or, the amount of money an investor holds in each asset type.

If an investor holds stocks in industries that have been struggling and may continue to struggle due to floundering demand, for whatever reason, they may opt to sell some of the stocks that are declining in value.

Even if such holdings get sold at a loss, the investor could then put money earned from the sale of these stocks towards safe haven assets, potentially gaining back their recent losses. Whenever considering a bigger shift, however, it can be wise to discuss options with a financial advisor.

The Takeaway

Pulling money out of the market during a downturn is a natural impulse for many investors. After all, everyone wants to avoid losses. But attempting to time the market (when there’s no crystal ball) can be risky and stressful. For many investors, especially investors with a longer time horizon, keeping money in the stock market may carry advantages over time.

One approach to investing is to establish long-term investment goals and then strive to stay the course, even when facing market headwinds. As always, when it comes to investing in the stock market, there’s no guarantee of increasing returns. So, individual investors will want to examine their personal economic needs and short-term and future financial goals before deciding when and how to invest.

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FAQ

In general, should I sell my stocks when the market is down?

Investors can sell their investments at any time, including when the market is down. Whether they should sell or not will depend on their goals and investment strategy, but generally, it’s likely more in line with most strategies to hold investments through downturns.

When is it smart to pull out of stocks?

It may be wise to pull out of stocks when you reach your financial goals, need cash for a short-term expense, or when a stock’s fundamentals have changed.

What are the tax implications of selling stocks?

Selling stocks triggers a taxable event, and investors will have a tax liability related to their capital gains. The rate will depend, in part, on how long they held the stock.

How long does it take to get my money after I sell investments?

There may be a short waiting period between when you get your money after you sell your investments. The length depends on the type of investment and your brokerage, but generally, it could take a day or two.

Instead of selling, should I invest more during a downturn?

One strategy during a market downturn includes buying more investments, which is sometimes called “buying the dip.” Some investors think of it as buying investments at a discount as values go down from previous highs.

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Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Jan
28
2026
Wooden framing and drywall clutter an attic room with a peaked ceiling that is being remodeled into usable space.”

Can You Use a Construction Loan to Complete Renovations?

By | Home Ownership, personal_loan, Terminology | No Comments

Renovations can improve your home and increase its value. But as any seasoned homeowner will tell you, those projects can be expensive. If you can’t afford to cover the costs out of pocket, you may wonder if a construction loan is right for you. While it is an option, there are complications that people should be aware of, as well as other home loans for renovations that might be a better fit.

Let’s take a look at construction loans, their requirements, and some alternatives to consider.

Key Points

•  Construction loans finance new home builds or major renovations, covering various costs.

•  Funds are released in stages, with interest-only payments on received amounts.

•  Lenders require a low debt-to-income ratio, high credit score, and may require a 20% down payment.

•  Benefits include covering all construction expenses, flexible terms, and potential savings.

•  Alternatives like personal loans and cash-out refinances offer lower interest rates and flexible repayment.

What a Construction Loan Is and How it Works

Construction loans finance the building of a new home or substantial renovations to a current home. They are typically short-term loans with higher interest rates, designed to cover the costs of land, plans, permits and fees, labor, materials, and closing costs. They can also provide a contingency reserve if construction goes over budget.

With a construction loan for home renovation or a new build, applicants must submit project plans and schedules along with their financial information as part of the qualification process. We’ll get into that in more detail below.

How Funds Are Disbursed During the Project

Once approved for a construction loan for a remodel or new build, a homeowner receives funding for the first phase of the project only, rather than a lump sum. As construction progresses, assessments are provided to the lender so that the next round of funds can be released. Meanwhile, borrowers make interest-only payments on the funds they’ve received.

When construction is finished — and the borrower now has a home to serve as collateral — the construction loan may be converted to or paid off by a regular mortgage. The borrower then begins repaying both the principal and interest.

Eligibility Requirements and Typical Terms

The formal application process for a construction loan involves submitting plans and specifications for the proposed building. Your builder will need to provide blueprints, estimated costs, and a schedule for the project. With a typical home mortgage loan the back-and-forth is between you and the lender; in a construction loan the builder or contractor will also play a key role, supplying important supporting documents.

As with a typical mortgage, the lender will scrutinize the borrower’s credit score (680 or above is ideal) and debt-to-income ratio, and you can expect to be asked to provide proof of income. A down payment of 20% is often required for a construction loan — after all, the lender is loaning money against collateral that doesn’t entirely exist yet.

Recommended: Home Maintenance Checklist

Renovation Loans vs. Construction Loans: What’s the Difference?

Though renovation loans and construction loans can be used for similar purposes, there are important differences to know. Let’s take a closer look at both types of loans.

Renovation Loans

Unlike other types of home improvement loans, a renovation loan takes into account the property’s after-repair value, which is an estimation of the home’s value once the improvements are made. This can be good news for borrowers, especially those buying a fixer-upper. That’s because they may be able to secure a larger loan amount than they would with a traditional mortgage based on the home’s current value.

What’s more, renovation loans often come with lower interest rates than credit cards and unsecured personal loans.

Some common types of lending for renovations include:

•  Government-sponsored loans, such as the FHA 203(k) home loan, Freddie Mac’s CHOICERenovation loan, and Fannie Mae’s HomeStyle renovation loan. Each type has its own rules and requirements.

•  VA renovation loans, which are available to eligible veterans and active-duty military personnel.

It’s also possible to use a home equity loan or home equity line of credit for renovations. More on that below.

Construction Loans

As we mentioned, a construction loan is commonly used to pay for building a brand-new home. In some cases, the loan can be converted to a mortgage after your home is finished. However, getting one can be more challenging than securing a conventional mortgage.

Lenders generally want to see a debt-to-income ratio of 45% or lower and a high credit score, and you may be required to make a down payment of at least 20%. Depending on the type of construction loan you apply for, you may also be required to provide a detailed plan, budget, and schedule for the construction. Some lenders will also need to approve your builder.

There are different types of construction loans to consider:

•  Construction-to-permanent loans, or single-close loans, which converts to a mortgage once the project is finished. The borrower saves money on closing costs by eliminating a second loan closing.

•  Construction-only loans, or standalone construction loans, which must be paid off when the building is complete. You will need to apply for a mortgage if you don’t have the cash to do so.

•  Renovation construction loans, which are designed to cover the cost of substantial renovations on an existing home. The loan gets folded into the mortgage once the project is complete.

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Pros and Cons of Using a Renovation Loan

As you explore different home improvement loans, consider the following pros and cons of renovation loans.

Pros

•  Borrowers may have access to substantial funds that can pay for major upgrades or repairs.

•  Money can be used for a wide variety of renovation projects.

•  The loan amount is based on the home’s projected value after the repairs and renovations are complete.

•  Interest rates tend to be lower than what you’d be offered with an unsecured loan or credit card.

Cons

•  You may be required to use your home as collateral.

•  As with any loan, you’ll need to meet certain eligibility requirements, such as a good credit score, low debt-to-income ratio, and proof of income and employment.

•  A renovation loan increases your debt load, which could put a strain on your finances.

Recommended: Home Inspection Checklist

Pros and Cons of Using a Construction Loan

There are advantages and disadvantages to consider before taking out remodeling construction loans to fund renovations.

Pros

•  Funds can be used to cover all construction expenses.

•  Borrowers can use equity from other investments as collateral.

•  Loan requirements are generally focused on the construction process instead of a borrower’s credit profile.

•  Borrowers may only need to make interest payments during construction.

•  Loan terms may be more flexible than a traditional loan.

Cons

•  Funds are released as work progresses instead of in one lump sum.

•  It can be difficult to find lenders that offer competitive rates and to qualify for them — particularly if you don’t have a flawless credit history.

•  Loans tend to be short-term and must be paid in full at the end of the term.

•  May need to provide extensive documentation on the construction process in order to get approved.

•  If construction is delayed, you may need to ask the lender for an extension on the loan. This can cause interest rates and fees to accumulate.

When to Use a Renovation Loan vs. a Construction Loan

The key to knowing when to use a renovation loan vs. a construction loan is written right in the names of these financial tools. If you’re building a home, a construction loan will be necessary. But if you are substantially renovating a home, a renovation loan might be just the ticket. It’s not your only option, however, and there are less complicated ways to finance small- or medium-size renovations.

Alternative Ways to Finance Home Renovations

If you are planning a small construction project or renovation, there are a few financing alternatives that might be easier to access and give you more flexibility. Here’s a look at home equity loan vs. HELOCs vs. home improvement loans.

Personal Loans for Renovations

An unsecured personal loan can fund a renovation project or supplement other construction financing.

Personal loan interest rates are typically lower than construction loan rates, depending on your financial profile. And you can frequently choose a personal loan with a fixed interest rate.

Personal loans also offer potentially better terms. Instead of being required to pay off the loan as soon as the home is finished, you can opt for a longer repayment period. And applying for a personal loan and getting approved can be much faster and easier than for a construction loan.

The drawbacks? You won’t be able to roll your personal loan into a mortgage once your renovation or building project is finished.

And because the loan is disbursed all at once, you will have to parse out the money yourself, instead of depending on the lender to finance the build in stages.

Cash-Out Refinance for Construction Costs

A cash-out refinance is also a good financing tool, particularly if you have a lot of equity in your current home. With a cash-out refinance, you refinance your home for more than you owe and are given the difference in cash.

You can estimate your building or renovation expenses with this Home Improvement Cost Calculator. Add your estimate to what you owe on your home to get the amount of your refinance.

Home Equity Loans and HELOCs

Both a home equity loan and a home equity line of credit (HELOC) allow you to borrow funds based on your home equity to use for any purpose you wish. Your home serves as collateral. This means that if you fail to repay what you borrow, with interest, the lender could foreclose. The good news, though, is that because the lending is secured by your home, interest rates are often pretty attractive.

Home equity loans are lump-sum loans, typically with a fixed interest rate. So your monthly payment remains the same for the full repayment term, which could be up to 30 years.

A HELOC is a credit line. You can draw against it as needed, up to the maximum you are allowed. For the first five or ten years, you often don’t have to repay the principal — you can just pay interest. Interest on HELOCs is more likely to be a variable rate, so payments can be somewhat unpredictable. After the initial “draw” period you have to stop borrowing and you begin to repay what you have borrowed, with interest.

Grants or Government Programs for Certain Renovations

FHA loans and VA loans aren’t the only government programs that can help fund renovations. There may be grants or loans available from government or nonprofit sources, depending on your specific renovation project and your personal circumstances. Check your local government web site for more information about programs in your local area. There are often programs specifically for older adults, Native Americans, and those in rural areas. If your renovations might make your home more energy efficient, also check in with your local power company.

Using Savings or Cash for Smaller Projects

Remember that if your renovations aren’t a big production, you may be able to earmark savings for them, if the repairs aren’t urgent and you are willing to be patient and save up the money. Flexing your savings muscle is a good idea even if you are financing some or all of the work. “When budgeting for a remodel, it can be helpful to have a dedicated fund for renovation expenses. This can help you allocate the appropriate amount of money,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi.

The Takeaway

Planning a new home or substantial renovation? There are several ways to pay for the projects. One option is a renovation loan, which lets you pay for major (and minor) renovations without having to dip into your personal savings. Another option is a construction loan, which typically covers the entirety of new construction expenses. For smaller projects, a personal loan can be a good option — and a lot less complicated.

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

Can you use a construction loan for renovations on an existing home?

It is possible to use a construction loan to fund renovations on an existing home, but it may not be the easiest way to borrow for your renovation. That said, if you need a very large sum and are planning to work with a builder or contractor who can help provide plans and other supporting documents, it is doable.

Can you convert a construction loan to a regular mortgage after renovations are complete?

It is possible to either convert a construction loan to a typical mortgage or take out a mortgage to pay off a construction loan. Explore what your options will be before you sign on to a construction loan with a lender.

Do you need equity in your home to qualify for a renovation or construction loan?

Lenders who fund renovation or construction loans often like to see that a homeowner has a significant amount of equity — sometimes 20% or more — before financing the work. The exception would be for an FHA 203(k) loan. If you have a credit score of 580 or better, you may be able to fund a renovation with an FHA loan even if you have just 3.5% equity. A score from 500 to 579 will require 10% equity.

How do inspections and draw schedules work with construction loans?

In the application stage of your construction loan, you will (with your builder or contractor’s help) submit a schedule with certain milestones that correspond to stages of funding of your loan. As your project reaches each milestone, the project manager, builder, or you will report in to the lender. It’s not just a casual phone call: Your draw request (the process of drawing down your loan) will require documentation, and an inspector may come out to review the work. Once all this is completed and the lender is satisfied, the lender will send the funds.

What are some alternatives if I don’t qualify for a construction or renovation loan?

If you don’t qualify for a construction loan for renovation or a government-backed renovation loan such as an FHA 203(k) loan, you might look into a personal loan, which is unsecured. Or if you have some equity built up in your home, you might fund your renovations by using a home equity loan, home equity line of credit (HELOC), or a cash-out refinance.

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All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
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Jan
27
2026
A white claw-foot bathtub with black feet stands center-stage in front of a garden-facing window in a chic bathroom painted and tiled in white with black accents.

How Much Does it Cost to Remodel a Bathroom?

By | Home Ownership, personal_loan | No Comments

A bathroom remodel is a major project. Whether you’re looking to do a cosmetic refresh or a total gut job with all new high-end fixtures, the process takes planning, time, effort, and money. But the end product can be well worth it: A beautifully updated bathroom can significantly improve your home, bump up its resale value, and make your everyday life more enjoyable.

How much will it cost? Depending on the scope of work, a bathroom remodel could cost anywhere from $3,000 to $80,000, but many homeowners in the U.S. will pay around $26,000 for a midrange bathroom remodel. If you live in a major metro area (where the cost of living is generally higher) and you choose a luxury renovation, you may pay as much as $80,000 for a bathroom remodel.

Your bathroom budget will greatly depend on the purpose of your remodel. Whatever you have in mind, this guide will help you plan appropriately, anticipate problems, and ensure you end up with a room you love.

Key Points

•   The national average cost for a midrange bathroom remodel is about $26,000, but costs can range from $3,000 to $80,000 depending on the scope.

•   The size of the room and the extent of the renovations are the most important factors influencing total cost.

•   A successful remodel requires determining the primary goal, researching costs, budgeting for a 20% cushion for unforeseen expenses, and meticulously planning every detail before demolition begins.

•   For complex projects involving structural or system changes, you should hire professionals such as a designer, architect, or a general contractor.

•   After completion, create a punch list of any issues that need fixing, and hold off on making the final payment until all corrections and finish work are satisfactorily completed.

Why Homeowners Remodel Bathrooms

Here’s a look at the most common reasons why homeowners decide to remodel a bathroom. For many, it can be a combination of reasons.

Updating the Look

Happy with the layout of your current bathroom but feel it just needs a refresh? Focus your attention on material selection, and perhaps add new cabinetry or plumbing fixtures. You can find plenty of inspiration online, including ideas for how to make a small bathroom look bigger.

Even if you’re not making a major structural change, you’ll still want to pay attention to the age of your home and the remodels done by previous homeowners. After all, laying new tile over a foundation rife with mold or making do with an outdated electrical system may mean inviting big problems down the road.

Resale Value

If you’re updating your bathroom in preparation for selling your home, think about what potential buyers might look for. While it’s impossible to anticipate what any one individual might want in a new home, you can research your local real estate market to learn what appeals to the majority of homeowners.

You also can find out the resale value of bathroom remodels by using an online home project value estimator.

Better Functionality and More Storage

Perhaps you’ve always hated how the door hits the vanity as it swings open, or you’re tired of stacking toilet paper on the tank and seeing makeup on the counter. Or maybe you never use the bathtub and long for a large shower stall, or would prefer two sinks instead of one to expedite the family’s morning rush. Is your bathroom a dark, moist cave? It may be crying out for more natural light and better ventilation.

This level of bathroom remodel may require gutting the entire space, possibly rearranging the fixtures and rerouting plumbing. Not only will your bathroom be brand new in that case, it could be higher end, too.

Recommended: Guide to Bedroom Remodels

Factors That Influence Bathroom Remodel Costs

There are two important factors to consider as you’re budgeting for a bathroom overhaul: the size of the room and the extent of the renovations. Let’s say that you’re planning more than a cosmetic refresh. A minor renovation on a small bathroom (say 3×5 feet) might cost as little as $2,300. A major remodel on a large bathroom of, say, 200 square feet, could cost as much as $60,000. As noted above, in areas with an especially high cost of living, the cost to renovate a house is typically high too, and these numbers could be even higher. Prices of materials and labor have increased in recent years. Even the costs to remodel a basement are nothing to sneeze at these days.

Average Cost of a Bathroom Remodel

Now it’s time to get down to the nitty gritty. Exactly how much does it cost to remodel a bathroom? Assuming that you’re planning more than a cosmetic refresh, let’s look at the average costs according to home services and project management site Angi:

•   A minor renovation: $3,000 to $10,000

•   A moderate renovation: $10,000 to $20,000

•   A complete renovation: $25,000 to $80,000

To keep your project on the lower end of the range, avoid moving walls, plumbing lines, or electricity. Removing a bathtub and replacing it with a shower enclosure can be one of the more costly aspects of a project. Many homeowners are surprised to find that demolition (both the labor and the disposal of rubble) can be a costly part of the project.

How much to renovate a bathroom will depend on your budget as well as factors such as how badly deteriorated the conditions are and when you might be planning to sell the property. Rest assured, there are inexpensive ways to refresh your home if you know where to look, and doing the research and brainstorming can actually be fun.

Budgeting for Your Bathroom Remodel

As you prepare your finances for a bathroom remodel it’s helpful to start with a general idea of how much you think you might want to spend. This will inform your discussion with a designer, architect, or contractor (depending on the extent of your project), which will in turn govern your bathroom remodel price. Once you’ve closed in on a general budget, you’ll get bids from a general contractor or from individual tradespeople, depending on how you are managing the project.

The next step in budgeting is to determine where the funds will come from. Perhaps you’ve been saving up for this project and have the cash on hand. If so, congratulations. If you need to borrow money to get the project off the ground, consider a home improvement loan, which is a lump-sum loan specifically designed for household renovations. This type of loan could be anywhere from $5,000 to $100,000 depending on your needs and your credit profile.

You might also use an existing line of credit such as a home equity line of credit if you have one in place. Your contractor or other project manager will provide details on when you’ll need to make payments for the project, so whatever method of financing you choose, remember that it’s unlikely you will need all the funds from Day One. You might be able to make a deposit using savings and then fill in the rest of what is owed with a home improvement loan.

How to Plan a Bathroom Remodel

Embarking on a bathroom remodel can be daunting, and there are many parts of the process where things can go disastrously wrong. What follows are 10 steps that can help streamline the process and ensure your remodel is a success.

1. Determine What Your Bathroom Remodel Should Achieve

When starting any home improvement project that requires a good chunk of time and cash, you want to determine what the overall goal is. Is it to expand the existing space? To add a shower or a tub? To improve your home’s value? To update a vintage bathroom to one that is more modern in design and functionality? Your answers will factor into your design and budget.

Other considerations to make when planning a bathroom remodel include:

•   How many people will use the room?

•   How much time do you spend in the bathroom in the morning, afternoon, and evening?

•   What’s your routine? How does your current space hinder it? How could a new space improve it?

•   Do you just want something that’s easy to clean? Or do you want to improve the look for resale?

2. Research and Budget

Before you get too far with planning, it’s good to know how much bathroom you can afford. Depending on the type of bathroom reno you’re looking to do, most projects will come in between $70 and $250 per square foot.

Before proceeding with your dream plans, think about whether you’re after a basic update, a mid- to upper-range remodel, or a deluxe spa getaway. It’s also a good idea to factor in a cushion of 20% for unforeseen costs. An online home improvement cost calculator can help you get a ballpark estimate of what your plan will cost.

A significant way to cut expenses is to avoid moving the existing plumbing and wiring. Some homeowners focus on just a shower remodel, which can run anywhere from $500 to $20,000.

“One strategy to approaching home improvements is to create your dream list but have alternates in mind in case your budget or material availability creates a need to alter the project down the road. For example, you may love the look of marble flooring, but its price point might be higher than you initially estimated. Having a cost-efficient back-up plan can keep your budget in check,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi.

3. Hire the Right Professionals

Given the complexity of rerouting plumbing, laying tile and flooring, and installing vanities and toilets, you may need to hire a few different professionals to get the job done:

•   Interior designer, to reimagine the space and source materials

•   Architect, to handle structural changes

•   Plumber

•   Electrician

•   Tile installer

•   General contractor, to manage them all

What exactly will all these folks be doing, besides spending your money? We’ll walk you through it.

First, a professional interior designer will think of things a homeowner will not. For instance: which way the cabinet doors open, if there’s room for a washer/dryer, how a skylight could brighten the space, or ways to rearrange the room in a creative way that maximizes both functionality and efficiency.

On the other hand, if you know what you want and where to find the products you need — and have an eye for good design — then you might take on the design process yourself.

A general contractor will hire and supervise the various subcontractors, and keep the project on schedule and on budget. If you have DIY experience and are comfortable tackling (or supervising) the demolition, construction, and installation, you may not need a general contractor. Just remember that once you start exposing layers of old work, a straightforward update can devolve into something more complex.

For major structural changes, you’ll want to hire an architect, and consider bringing in an experienced plumber and electrician, too. In some places, it’s required by law.

While you’re keeping an eye on the budget, don’t forget about your valuable time. Even with DIY experience, a bathroom remodel can take homeowners several times as long as a professional to complete — and your results may not be up to your high standards. To keep your budget on track, you might take on simpler tasks like demo and painting and hire out the rest.

Recommended: How to Pay for Emergency Home Repairs

4. Refine Your Bathroom Remodel Plan

If your dream bathroom couldn’t ever fit in the space you have, think about what’s on the other side of the bathroom walls. Can you steal square footage from an adjacent closet, adjoining bedroom, or underused hallway? Is it possible to punch out an exterior wall to add square footage?

Other options to consider: whether you want the toilet out in the open or housed in its own private water closet, and what kind of special storage you may need — for hair tools, makeup, and other everyday essentials.

Choosing the style of bathroom you want can also be tricky. You may love the look of the industrial-style bathroom in your favorite restaurant, but will it look right in your Craftsman bungalow? Designers recommend that you look to the rest of your house for inspiration. You may also want to consult resources like Pinterest for ideas.

5. Approve Your Bathroom Remodel Design

Next you’ll consult with your interior designer and/or architect to review preliminary floor plans and sketches. These will show how the room’s components — shower, vanity, any cabinetry — fit in the space.

At this point, you’ll focus on the big picture: where the major elements go and the functionality of the space. Don’t worry about the finishing touches like colors and materials. These drawings and scope of work will be used to interview contractors and solicit estimates.

6. Get Estimates From Contractors

It’s a common process to get three separate estimates from licensed contractors for each home remodel project in which you bring in professional help. If you’re already working with a designer, they may know skilled contractors or can help you interview professionals to make sure they’re right for the job.

You’ll want to carefully evaluate each contractor’s bid. Don’t let the highest bid scare you, or immediately jump on the lowest bid.

Once you have a few bids you can make a first decision about how you might pay for the renovation and whether you have the funds available or need to consider borrowing.

Recommended: How Do Home Improvement Loans Work?

7. Choose Your Bathroom Materials, Finishes, and Colors

Now it’s time to research materials, so you’ll have a basic knowledge of what you need and final costs. Marble may look great, but it’s not stain-resistant and is a pain to maintain.

Maybe you want to look at easy-to-clean options. Or perhaps you didn’t know that wood can indeed work for countertops in bathrooms if properly sealed, or you weren’t aware of the vast stone possibilities that could work with your design.

8. Work on Design Development and Construction Documents

At this stage, you should be actively reviewing the floor plan, elevations, tile layout, and any other relevant drawings associated with your project. More planning on the front end of the project can mean fewer mistakes will arise later in the process.

You’ll also want to be kept up to speed on everything that goes into your project: what materials will be used, and how they will be laid out. If something in construction drawings isn’t specified — such as general tile layout or how you want trim pieces in your shower niche to look — chances are your tile installer will make a decision on the spot, especially if you’re not around on the install day.

This stage will also involve pulling permits. If you’re working with a knowledgeable contractor, they will likely take this on. Many are skilled at navigating the process with contacts they’ve made at the local planning office. If you’re doing much of the work yourself, you’ll need to brush up on what permits you’ll need, and where and how to submit drawings for approval.

9. Plan for Installation and Prepare for Bathroom Demo

In an ideal world, you will have every last detail planned and every material picked out and ordered before construction starts. The last thing you want is to get halfway through your remodel and have to tell your construction crew to take a two-week break while you wait for that back-ordered lavatory fixture to arrive from Italy.

You’ll also want to nail down the nuts and bolts of how construction will flow and where supplies will be stored. You’ll need a dry space inside for most materials, so you’ll need to decide where you’re going to keep displaced furniture and household items while construction is underway. Can you make space in your garage or on the side of your house?

Other questions to consider:

•   Are you prepared for the disruption?

•   What time will the workers be there, and will someone be on-site to answer questions and oversee the construction?

•   Will it affect your work schedule or any trips planned?

•   Where will you shower during construction?

•   Do you have an alternate place to stay should the inconvenience of not having a bathroom become too much?

•   Who in your family will be available should a construction question come up?

Any last-minute decisions need to take top priority to ensure a smooth-running bathroom remodel that stays on budget and on time.

10. Make a Post-Completion Punch List

Despite meticulous planning, it’s likely that something with your bathroom remodel will go wrong. Maybe you overlooked something, materials arrived broken or scratched or not at all, there’s a dent in the wall, or the caulk was too messy.

Now is the time to make a list of these things, either in an informal email or more formal document with your contractor. Get it into the hands of the person responsible for correcting the mistakes and include a date by which the fixes and finish work should be completed.

It’s normal for a contractor to return several times to address any post-project concerns, so try not to worry. Everyone makes little mistakes in a big, complicated project like a bathroom remodel. Just hold off making your final payment until the problems are fixed.

Whether or not you will need a permit for your bathroom remodel will depend on local building codes. Generally speaking, a permit is required if you are moving walls, windows, doors, floors, or making changes to plumbing or electricity. Installing a new drain line or new lighting fixtures might make a permit necessary, for example.

Your contractor can tell you if a permit is needed and can also file the necessary paperwork. Ask about this at the bid stage, as there are charges for filing and expediting permits that should be factored into your costs. You’ll also want to build in time for an inspection after the work is done if obtaining a permit is involved.

Tips for Living at Home During a Bathroom Remodel

If your home has more than one bathroom, and your renovations are confined to the bathroom, you will likely be able to live at home during the renovation. When interviewing contractors and checking their references, you’ll want to ask about cleanliness. Especially if you are going to remain in your home during renovations, you’ll want a contractor known for containing their dust and tidying up their tools well at the end of the day. (Don’t just take the contractor’s word for it; ask references specifically about cleanliness.)

Ask workers to seal off the work area with plastic sheets to minimize exposure to the dust that will inevitably arise. If water will be shut off for long periods, having a second bathroom won’t really help you. Check in with a neighbor to see if you might borrow their bathroom. Or consider getting a membership to a gym with shower facilities.

The Takeaway

A bathroom remodel can be a complex and costly project. Before you jump in, consider the purpose of your remodel, the scope of work it will involve, and your budget. Costs vary widely, anywhere from $3,000 on the low end up to $80,000 on the higher end, with the average falling at about $26,000. To keep costs down, take the time to plan meticulously and get multiple bids from contractors.

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 bathroom remodel?

The average cost of a bathroom remodel is $26,000, but costs can range widely based on the size of your bathroom, the extent of the renovation, whether moving plumbing or electrical lines is necessary, and the cost of the fixtures and materials (such as tile) you choose.

How long does a typical bathroom remodel take?

A minor bathroom remodel might take just two or three weeks, while more extensive renovations could require six to eight weeks. This doesn’t include the time you’ll spend designing the bathroom or getting bids from prospective contractors. This cost estimate also assumes that you have all your materials ready at the point that you begin demolishing your existing bathroom. Waiting for deliveries of fixtures, tile, or other materials can delay your progress. If your bathroom requires a building permit, allow additional time at the end for a building inspection if one is necessary.

Do I need a permit to remodel my bathroom?

Permit requirements differ based on location so it’s always a good idea to check your local rules. Generally speaking, you will likely need a permit if you plan to demolish or move walls or windows, move plumbing or electrical lines, or make other major changes. Your contractor can also help you understand whether a permit is needed in your area.

What should I prioritize when remodeling a small bathroom?

Functionality is a top concern when remodeling any bathroom, and this is especially true when you are dealing with a small space. Take time before meeting with a designer or contractor to think about how you use the space and what is currently inconvenient about it. Does it lack storage, for example? An experienced designer can help you maximize storage with efficient cabinetry or shelving, as well as encourage a feeling of spaciousness by using lighting, paint colors, and well-placed mirrors.

Can I remodel a bathroom myself, or should I hire a contractor?

Whether or not you can do your own bathroom renovation will depend on the extent of the changes you’re making and the degree of your skills. In a bathroom, even something that seems relatively simple, like a new coat of paint, can be made more complicated by the need of the surface to withstand repeated exposure to damp conditions. Unless you have experience, it’s unwise to try making changes to plumbing, electrical fixtures, or tile work on your own.

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All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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2026
A woman writes on a pad with a pen while working on a laptop computer.

What is Paper Trading Stocks and How To Get Started

By | Financial Independence, Growing Wealth, invest, Investing | Comments Off on What is Paper Trading Stocks and How To Get Started

Paper trading is simulated trading, done for practice without real money. It’s a way to test different trading strategies without the risk of losing money, before an investor starts trading with real capital.

The practice gets its name from how investors would once mark down their hypothetical stock purchases and sales and track their returns and losses, on paper. But these days, investors typically use digital platforms to virtually test out hypothetical investment portfolios, day-trading tactics, and broader investing strategies.

Key Points

•   Paper trading is simulated trading done for practice without using real money, allowing investors to test strategies without financial risk.

•   Paper trading helps new traders build skills and make mistakes without risking real money, in both bear and bull markets.

•   To start paper trading, choose a virtual trading platform, develop a practice plan, and analyze results to refine strategies.

•   Paper trading allows investors to learn about investing, track trades, and examine stock performance in a low-stress environment.

•   Paper trading has limitations, including not perfectly replicating market conditions and potentially encouraging bad habits due to lack of real financial consequences.

How Does Paper Trading Work?

In its most basic form, paper trading involves selecting a stock, group of stocks, or a sector, then writing down the ticker or tickers and choosing a time to buy the stock. The paper trader then writes down the purchase price or prices.

When they sell the stock or stocks, they write down that price as well, and tally up their return. Most modern paper traders can use a simulation platform to keep track of their trades, rather than a pen and paper.

What Are the Pros of Paper Trading

Paper trading has both benefits and drawbacks. Here are some of the pros of paper trading.

Practice Trading Without Risking Real Money

Paper trading is a way to learn and build trading skills in either a bear or a bull market. For new traders, a virtual trading platform offers a way to make rookie mistakes without risking real money.

In other words, paper trading is a method to get comfortable with the process of buying and selling stocks, and making sure you don’t enter a limit order when you mean to place a market order.

Learn the Mechanics of an Investing Platform

Similarly, investors can learn the mechanics, or ins-and-outs, of particular investing platforms. That can be helpful when you want to take certain actions, perhaps within a set time frame, and know exactly what to do.

Test and Refine Your Trading Strategies

Perhaps most importantly: paper stock trading allows for experimentation. For example, an investor might hear about shorting a stock. But they may not know how the process works, and what it actually pays out. Paper trading permits investors to learn how these trades work in practical terms. Or, they might want to try out other strategies, such as swing trading.

Further, you can test your own mettle. Paper trading can serve as a way for investors to learn about their own strengths and weaknesses. Traders lose money in the markets for a number of personal reasons. Some stick to their guns too long, while others give up too soon when the market is down. Some lose money because they panic, while others lose money because they ignore clear warning signs.

What Are the Cons of Paper Trading?

There are also some drawbacks to paper trading.

It Doesn’t Simulate Real Trading Emotions

The biggest drawback of paper trading is that it’s not real. An investor can’t keep the returns they earn paper trading. And those paper returns can lead the investor to have an unrealistic sense of confidence, and a false sense of security. Paper trading also doesn’t account for real-life situations that might require an investor to withdraw money from the market for personal reasons or the impact of an unexpected recession.

As such, hypotheticals don’t necessarily spur genuine emotions. You’d likely react differently with real money on the line, in other words, than you would knowing that you’re simulating market conditions. So, paper trading may not be helpful for some investors when trying to emotionally prepare for market volatility.

It Can’t Perfectly Replicate Market Conditions

While paper trading offers important lessons, it can also mislead investors in other ways. If a paper trading strategy focuses on just a few stocks, or using one trading strategy, they can easily lose sight of how broader market conditions actually drive the performance of those stocks, including stock volatility, or their strategy, or have an inflated confidence in their ability to time the markets.

They need to realize their holdings or strategy may offer very different results in a real-world scenario.

Another danger with paper-trading is that traders may overlook the cost of slippage and commissions. These two factors are a reality of actual trading, and they erode an investor’s returns. Slippage is the difference between the price of a trade at the time the trader decides to execute it and the price they actually pay or receive for a given stock.

Especially during periods of high volatility, slippage can make a significant impact on the profitability of a trade. Any difference, up or down, counts as slippage, so slippage can be good news at times. Since brokerage commissions and other fees always come out of a trader’s bottom line, paper traders should include them in their model.

It Can Encourage Bad Habits

To a certain extent, investing with hypothetical dollars can help investors practice keeping their emotions in check while the markets are going up and down. However, once an investor’s real money is in play, it can be much more difficult to remain calm and keep perspective when stressful situations arise, such as when the market plunges over the course of a trading day.

To prepare emotionally, as well as practically, for the volatility of markets, investors can also practice risk management techniques appropriate for the strategies they’re exploringÄ. It can also be wise for novice investors to trade in smaller amounts, at first, as they learn more about the markets and become more comfortable with the interface and tools of the brokerage they’re using.

How to Start Paper Trading in 3 Simple Steps

If you’d like to try paper trading, be sure to research your investments, just like you would if you were investing for real, and use the same amount of paper money you would use in real life. This will help mimic the actual experience.

With that in mind, here are a few steps to get started.

Step 1: Choose a Paper Trading Platform or App

If you choose to paper trade with a pencil and paper, you can simply choose a stock or group of stocks, write down the ticker, and pick a time to buy the stock. You then write down the purchase price, or prices. When you sell the stock you record that price and then figure out your return.

If you decide to use an online investing platform, you’ll need to choose a platform. There are many free platforms available. You may want to look for one that has live market feeds so that you can practice trading without delays.

Once you’ve selected a virtual trading platform, you’ll set up an account. Simply log onto the platform and follow the prompts to set up an account. Once you’ve done that, there should be a “paper trading” option you can click on.You’ll need to select a balance and then you should be able to start simulating trading.

Step 2: Develop a Practice Plan or Strategy

The entire point of paper trading is to practice and test out your strategies. So, have some in mind before you start. Find an investing calculator. Think about buy-and-hold tactics, or swing trading and daytrading techniques. Give it all some thought.

You don’t even need to worry about Securities Investor Protection Corporation protection, or SIPC protection, at first, since its paper trading is all a form of practice. That protection helps protect investors up to certain amounts if they are victims of fraud or firm failure, similar to FDIC protections. SIPC does not protect against market losses, however. Try enacting your strategies over a set period of time, and see what happens. Again, this is the time and place to make mistakes, so don’t worry too much about the outcomes.

Experiment with different types of market orders, after hours trading, the whole shebang.

Step 3: Analyze Your Results and Learn

After you’ve gotten the hang of the platform and done some practicing, take a look at what your strategy has yielded, and analyze the results. Did your trend trading technique work out as you had hoped? Did you let your emotions get the best of you during a bout of volatility?

Think about the decisions you made, and how you can use what you’ve learned to sharpen your strategy when you move to trading with actual money.

The Takeaway

Paper trading can be a way to learn about investing. By keeping track of all trades, and the losses or gains they generate, it creates a low-stress practice for examining why certain stocks, and certain trades, perform the way they do. That can be invaluable later, when there’s real money on the line.

However, remember that paper trading isn’t real. In real-life trading with an investment account, you’ll have the potential for gains, but also for losses. Make sure you are comfortable taking that risk.

Invest in what matters most to you with SoFi Active Invest. In a self-directed account provided by SoFi Securities, you can trade stocks, exchange-traded funds (ETFs), mutual funds, alternative funds, options, and more — all while paying $0 commission on every trade. Other fees may apply. Whether you want to trade after-hours or manage your portfolio using real-time stock insights and analyst ratings, you can invest your way in SoFi's easy-to-use mobile app.


Opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.¹

FAQ

How realistic is paper trading?

Paper trading is very realistic as paper traders are working in and with actual market conditions. The only difference should be that they’re not trading or investing real money.

Is paper trading good for beginners?

Yes, paper trading can be good for beginners as it gives them a chance to refine their strategy, learn about their risk tolerances or tendencies, and learn how to use a given platform without fear of making a costly mistake.

How long should I paper trade before using real money?

The duration you should paper trade before using real money is completely dependent upon you and your specific comfort level. Some investors may not want to paper trade at all and jump right into the mix with real money, while others will want to practice for a prolonged period of time — so, there’s no single answer.

Can you make real money with paper trading?

No, paper trading is done with virtual or fake money. As such, there isn’t really a way to generate an actual return.

What is the 90% rule in trading?

In trading, the 90% rule refers to the belief that 90% of traders will lose 90% of their capital within the first 90 days of trading. This is largely due to inexperience, unproven strategies, and their inability to handle risk.

Photo credit: iStock/fizkes

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SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.


¹Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease. See full terms and conditions.

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2026
Top Bathroom Trends of 2022

Top Bathroom Trends of 2026

By | Budgeting & Goals, Home Ownership, personal_loan | Comments Off on Top Bathroom Trends of 2026

Today’s burgeoning bathroom trends range from bold wallpaper and maximalist touches to sleek Art Deco lines and natural materials. Whether you’re gut-renovating a primary bathroom or freshening up a powder room, you’re bound to find plenty of inspiration at all price points and levels of difficulty.

Keep reading to find bathroom remodel ideas for 2026, plus tips on how to budget for the home spa of your dreams.

Key Points

•   Statement wallpaper, wet rooms, and sensory design are leading trends in bathrooms for 2026.

•   Dual showerheads and Art Deco influences add practicality and vintage charm respectively.

•   Bold colors and high-tech features enhance aesthetic and functionality.

•   Budgeting for a bathroom renovation involves planning for essential materials and labor costs.

•   Consider resale value and financing options to maximize investment.

8 Bathroom Ideas for 2026

The dominant bathroom remodel trends for 2026skew modern in nature with clean lines, organic materials, and a lot of warm, natural wood. At the same time, some homeowners are taking cues from their grandmothers, incorporating throwbacks to the 1960s with pink tile and patterned wallpaper. Whichever route you take, there’s little denying these bathroom ideas 2026have a little something for everybody.

1. Opt for Statement Wallpaper

Price: Low
Difficulty: Moderate
Style: Varies

Wallpaper with a major pattern is a quick way to give a bathroom loads of style. This isn’t a moment for small-scale patterns or neutral colors. Rather, designers and homeowners are embracing rich colors and bold imagery. For example, you might choose an exuberant Victorian floral against a black background or a mural-like forest motif.

Wallpaper prices can range from $10 to over $1,000 a roll, with an average of around $100. If you are DIYing it, you might want to choose from among the many forgiving peel-and-stick options on the market today.

Recommended: The Cost To Repair a Plumbing Leak

2. Get Wet

Price: High
Difficulty: Professional
Style: Contemporary

One big trend in bathrooms for 2026 is to have a bathroom that’s a wet room. This means the tub and shower are in their own zone, typically behind a glass partition. There’s a drain in the floor by the shower since it’s not enclosed by a door or curtain. In this open and flexible set-up, there’s more room for tile, giving you the freedom to make more of an impact with color and pattern, if you like, rather than plain white subway tile.

3. Design for the Senses

Price: Moderate
Difficulty: Varies
Style: Contemporary

Who doesn’t want their bathroom to be an immersive space that soothes their senses? That’s what this 2026 trend is all about. It could involve installing a rainfall shower; handcrafted, tactile ceramic tiles that add texture; and adjustable ambient lighting. Smaller touches can include plants and soundscapes, courtesy of a next-gen audio system.

4. Double Up on Showerheads

Price: Low
Difficulty: Moderate
Style: Contemporary

Adding side-by-side showerheads is one of many shower remodel ideas you may choose to add to your bath remodel. Not only does it add symmetry to your shower, but it allows more than one person to shower at a time. That can come in handy if you have children you’re trying to bathe simultaneously, or spouses who get ready for work at the same time.

5. Embrace Art Deco

Price: Moderate
Difficulty: Easy to Moderate
Style: Retro

Designers are finding the vintage appeal of Art Deco style from the 1920s and 1930s is a hot way to make a bathroom look chic. That can mean anything from adding the era’s signature sunburst mirrors to one wall or updating your faucets with sleek, curvy chrome ones. Larger projects could include geometric black and white tile floors or marble counter tops. Want a quick hit of retro style? Swap a utilitarian lighting fixture for a chandelier.

6. Add Touches of Black

Price: Varies
Difficulty: Easy to moderate
Style: Contemporary

Black is back in bathroom trends 2026. Taking a page out of Scandinavian design (which is fond of mixing black with natural wood), interior designers are using black walls, floors, and stone to make a strong statement. It looks newest and freshest paired with white fixtures and brass touches. This works well for those who love the color but don’t want their entire bathroom to be a single color.

7. Be Bold

Price: Varies
Difficulty: Moderate
Style: Varies

On the flip side of the sleek black trend of 2026, you’ll also find maximalist color and design. Adding a splash of color to your bathroom is one way to up the wow factor. Dare to go all pink — from a dusty rose floor tile to a blush-dominant floral wallpaper. Or mix mega-patterned wallpaper with towels in bright, saturated colors. Or cover the walls with framed prints and drop a sink into a reclaimed antique chest so it becomes your vanity. This will add loads of signature style to the space.

8. Go High-Tech

Price: Moderate
Difficulty: Moderate
Style: Contemporary

As home technology continues to advance, so do homeowners’ desires to operate everything via apps and devices. Many homeowners opt for wall-mounted digital interfaces that operate everything from the shower heads to stereo speakers. Adding heated flooring and high-tech bidets are also among the top bathroom ideas 2026.

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How To Budget for Your Bathroom Reno

According to the home improvement site Angi, the average bathroom remodel in 2026 costs $12,119. If you are, say, gutting your space, moving plumbing lines, and buying new, high-end fixes, the amount could be considerably more.

As you might guess, budgeting wisely is a key part of your bathroom update (and any remodeling project, for that matter). When researching materials, start with what you know you need: tile, faucet, paint, etc. For things like tile and paint, plan on purchasing 20% more than your square footage requires. It’s always better to have a little too much in case of installation errors vs. too little. Then consult DIY sites to make sure you include all the necessary incidentals to complete the project. For a DIY tiling project, for example, you’ll need grout, a grout float, thinset, sealant, drop cloths, etc.

The most expensive part of a bathroom reno can be a combination of materials and labor. Angi’s latest data indicated that cabinets and shelving can account for 25% of a budget; the shower and tub 22%; and the contractor 13%. However, full bathroom updates typically require a number of specialists, such as plumbers, electricians, and tile installers. That can mean labor costs wind up being 40% or more of your budget. Even for smaller updates, a general contractor can cost $50-$150 an hour.

Keep Resale Value in Mind

The good news is that bathroom updates do increase your home’s value — but there are limits. Typical updates recoup about 70% of their cost, according to Angi as of 2026.

The upshot: You’ll enjoy a better bang for your buck by keeping updates modest and avoiding anything too trendy or unique (ahem, red bathtub).

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Consider Your Financing Options

Before you commit to any of these bathroom remodel ideas, you’ll need to figure out how you’re going to finance your home improvement project. A personal loan, credit card, savings, or home equity loan are all ways you might finance your bathroom remodel. No matter how you pay for your bathroom upgrades, it’s wise to weigh your options and compare terms, conditions, and interest rates upfront.

One of the most flexible ways to finance a bathroom remodel is with a home improvement loan, which is a kind of personal loan designed to help finance this kind of project. It offers a lump sum of cash that is then repaid with interest in installments, typically over a term of two to seven years. These loans usually offer more favorable rates than credit cards.

The Takeaway

Taking advantage of bathroom trends for 2026 can give your home a style refresh, make it function better, and improve its resale value. Current directions for bathroom design include everything from retro Art Deco lines to maximalist patterns, and from high-tech fixtures to glossy black accents. Whichever way your tastes lean, make sure you have the budget to do things right. A home improvement loan, which is a kind of personal loan, could be a better choice than relying on credit cards, since it typically offers a lower interest rate.

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 color faucets are in?

When it comes to faucets, currently matte black and chrome are popular. But if you prefer, say, brushed bronze or polished brass, go for it. It’s your home, and you want faucets that will make you happy as you use them daily.

What is the trend in bathrooms 2026?

There are several bathroom designs currently. Some are about installing high-tech fixtures with spa-worthy functions; others are about using bold colors and patterns to enliven the space or adding Art Deco style for drama. There’s not one single look but rather options to suit every sense of style and performance goals.

How much does the typical bathroom remodel cost?

According to the home improvement site Angi, the average bathroom remodel costs around $12,000 in 2026. That said, there’s a huge range of prices possible. If you are just repainting or adding a bit of wallpaper, the price tag would be much lower. If you are doing a major overhaul with top-of-the-line fixtures and materials and a lot of work is needed by plumbers and electricians, your tab will be much higher.

Photo credit: iStock/LeoPatrizi

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