A roof replacement is likely one of the top three most expensive home repairs you will ever undertake. The “Sticker Price” is rarely the final cost; variables like municipal permits, disposal fees, and insurance deductibles can swing the budget by thousands.
We have compiled this financial center to help you navigate the economics of roofing—from securing a loan to claiming federal tax credits.
Breakdown: Where Your Money Goes
Before diving into financing, it helps to understand the cost distribution of a typical project based on our 2025 Labor Data.
| Cost Category | % of Total Budget | What It Covers |
|---|---|---|
| Labor & Overhead | 55% – 60% | Installation, Insurance, Warranty |
| Materials | 35% – 40% | Shingles, Underlayment, Flashing |
| “Hidden” Costs | 5% – 10% | Permits, Dumpsters, Taxes |
1. Paying for the Project
Financing & Loans
Cash is king, but 65% of homeowners finance their roof. Compare HELOCs, Personal Loans, and Contractor Financing.
Insurance Coverage
Does your policy cover age-related wear or just storm damage? Learn how to navigate the claims process.
2025 Tax Credits
UPDATED
The IRS offers a 30% credit for specific “Cool Roof” materials. See if your renovation qualifies for money back.
2. The Hidden Costs
Permit Fees
Most municipalities charge a flat fee or a percentage of the contract value. Do not skip this step.
Disposal & Dumpsters
Tearing off an old roof generates 3 to 5 tons of waste. Understand how weight limits affect your final bill.
ROI & Home Value
A new roof is an investment. How much of the cost will you recover when you sell your home?