How to Budget for a New Pool: Financing and Payment Plans

Adding a pool to your Arizona backyard is like creating your own get away place—a cool, inviting space to relax, entertain, and make lasting memories under the sun. But when it comes to budgeting, the process can feel overwhelming. 

With the average pool in Arizona ranging from $40,000 to $60,000, how do you account for upfront installation costs, ongoing maintenance expenses, and unexpected fees, all while deciding on the best financing options?

Over the past few decades, we’ve guided countless Arizona homeowners through this exciting but complex journey. We know that every pool project is unique, and budgeting decisions can often feel like uncharted territory. 

That’s why we’ve created this comprehensive guide to help you understand every aspect of the process—from breaking down costs to exploring financing plans and payment options that fit your budget. By the end, you’ll have the clarity and confidence to take the next steps toward making your dream pool a reality.

What Determines the Cost of a Pool?

If you’re in Arizona, you’ve probably heard that pools here cost anywhere from the mid-$40,000s to the mid-$60,000s on average. That’s a pretty big range, so what exactly affects those numbers? Here’s a breakdown to help you understand where your money will go:

1. Installation and Material Costs

• Size and Design:
  Believe it or not, the size of your pool doesn’t have as big an impact on the price as you’d think. For example, a 20-foot cocktail pool might cost about the same as a 25-foot pool because the crews and equipment have fixed costs. So if you’re deciding between two similar sizes, that extra 5 feet might give you more value for your dollar.

• Materials: 
  In Arizona, concrete pools are a top choice because they’re durable and completely customizable. Fiberglass pools are also gaining popularity thanks to their quick installation times. On the other hand, vinyl pools, though cheaper upfront, tend to fade and degrade faster in Arizona’s scorching heat, making them less ideal here.

• Equipment: 
  Your pump, filter, and cleaning system are the heartbeat of your pool. While some companies might pre-select options for you, the best ones will walk you through these decisions so you feel confident your pool will work exactly as you imagined.

2. Maintenance and Operational Costs

• Cleaning and Chemicals:
  From keeping the pool water crystal clear to balancing chemicals, maintenance will be a recurring expense. Your choice of water treatment system will impact how much you’ll spend on supplies each month.

• Energy Costs:
  Pumps, heaters, and lighting will add to your APS or SRP bill (Arizona’s two main power companies). You’ll also want to know their peak and off-peak rates to make energy-efficient choices.

• Repairs: 
  Over time, even the best pools need a little TLC. Make sure to factor in things like replacing filters or repairing heaters—and compare warranties from different companies so you know what’s covered.

3. Permits and Fees

Depending on your city, you’ll need permits for construction, which can cost hundreds to thousands of dollars. Some locations may also require inspections or specific site prep, like leveling uneven ground.

4. Upgrades and Extras

Want a waterfall, a Baja shelf for lounging, or a high-tech automation system? These extras will make your pool more functional and stylish but will also bump up your total cost. Many Arizona homeowners invest in features like advanced cleaning systems—especially because monsoon season and Haboobs (those giant dust storms!) can wreak havoc on pools without good filtration.

Understanding these factors will help you set realistic expectations and avoid surprise expenses as you plan your backyard retreat.

What Are the Best Pool Financing Options?

If paying for your pool upfront isn’t the option right now, financing options can help turn your dream into reality. Below are three popular methods to fund your pool, along with their advantages and potential drawbacks:

1. Personal Loans

• Pros: Fixed terms and predictable monthly payments make these loans straightforward to budget for. They also don’t require collateral, so your home isn’t at risk.
• Cons: Interest rates for personal loans are often higher than other financing options, especially if your credit score isn’t strong.

2. Home Equity Loans or HELOCs

• Pros: These options typically come with lower interest rates than personal loans, and the interest may even be tax-deductible (consult your tax advisor for details). They allow you to leverage the equity in your home.
• Cons: Your home acts as collateral, meaning missed payments could put your property at risk. Additionally, the approval process can take longer compared to personal loans.

3. Pool-Specific Financing

Many pool contractors partner with lenders to offer financing plans tailored for pool projects.

• Pros: These plans often feature promotional rates, such as zero-interest offers, and provide convenient terms for pool buyers.
• Cons: External lenders, like banks or credit unions, may offer more competitive terms, so it’s important to compare your options.

Pro Tip: Always compare interest rates, terms, and repayment plans from multiple lenders, including banks, credit unions, and contractor-partnered financing, to find the best fit for your budget. For example, a $50,000 pool financed through a 10-year HELOC at 4% interest would result in monthly payments of approximately $506.

What Payment Plan Works for Your Budget?

Breaking your pool’s cost into smaller payments can make it feel much more manageable. Here are three popular approaches:

1. Fixed Monthly Payments with Interest

Spread the cost out over several years with consistent payments. Just make sure to shop around for the lowest interest rates to save in the long run.

2. Flexible Installments

This plan allows you to combine a larger upfront payment with smaller monthly payments, offering flexibility based on your financial situation. For instance, a $40,000 pool could cost $1,333 per month for 30 months with no interest, or $757 per month for five years at a 5% interest rate.

Pros:

• Provides flexibility to adjust payments based on your immediate cash flow.
• Larger upfront payments can reduce interest costs over time.
• Interest-free options, if available, can save money compared to traditional loans.

Cons:

• Hidden fees: Some installment plans may include setup fees, processing fees, or penalties for early repayment. Always read the fine print.
• High-interest rates: If interest is applied, rates can climb significantly, especially for longer-term plans.
• Risk of overextending: Smaller monthly payments might seem appealing, but they could tempt you to stretch beyond your realistic budget, leading to financial strain down the road.

Pro Tip: Carefully evaluate the full terms of any flexible installment plan, including interest rates, additional fees, and the total cost over time. If the plan seems unclear, ask for a detailed payment breakdown.

How Can You Save Money on Your Pool?

Smart planning can help keep your costs in check without sacrificing your vision. Here are a few tips:

1. Shop During the Off-Season:

   Fall and winter are slower times for contractors, so you might snag discounts or quicker installation times.

2. Negotiate: 

   Don’t be afraid to ask contractors for discounts on materials or bundled services.

3. Go Energy-Efficient:

   Modern pumps, LED lights, and heaters may cost more upfront but will save you money on energy bills in the long run.

Avoid These Common Budgeting Mistakes

• Underestimating Ongoing Costs: 

  • Don’t forget to budget for maintenance and energy bills.

• Overstretching Your Budget: 

  • Stick to features you truly need—luxury add-ons can always be added later.

• Ignoring Loan Details: 

  • Always read the fine print to avoid hidden fees or penalties.

How Do You Choose the Right Pool Contractor?

Now that you’ve laid the groundwork for budgeting your pool, the next step is to choose a contractor who aligns with your vision and goals. Here’s how to ensure you’re working with the right partner:

Tools to Help You Choose

• Pool Pricing Estimator: Get a clearer idea of your total project costs by using our pool pricing estimator. It’s a quick and easy way to align your budget with your dream design.

• Financing Calculators: Use our financing calculator to explore payment options and find monthly terms that fit your financial plan.

Budgeting for a pool might seem like a daunting task, but with the right plan in place, it’s entirely manageable. From understanding the factors that influence costs to exploring financing and payment options, you now have a clear roadmap to make informed decisions.

Don’t let unexpected expenses or the fear of complex financing hold you back from creating your dream backyard oasis. With careful planning and the tools we’ve provided, you can confidently navigate the process and avoid common pitfalls.

Your next step? Use our pool pricing estimator to get an accurate idea of what your ideal pool might cost and explore our financing calculator to find payment terms that fit your budget. These tools are designed to simplify the process and empower you to take action.

For decades, we’ve helped Arizona homeowners like you turn their backyard visions into reality. Whether you’re looking for advice, tools, or a trusted partner, we’re here to guide you every step of the way.