DIY Wood Shutters from Pallets: How to Make Farmhouse Shutters for Under $40

Our lake house was pretty sad and neglected when we bought it. The exterior lacked any type of pizzaz and those massive dead trees weren’t doing it any favors either.

We knew curb appeal was priority number one, but here’s the thing: after sinking money into fixing the interior (because, you know, functional plumbing beats pretty shutters), our exterior budget was basically nonexistent.

We did replace the windows (making them wider and taller) and added shutters.

Cedar shutters?

We’re talking $200-300 per window. For three windows, that’s $600-900. That was not happening!

So we made our own outdoor shutters from pallet wood. And honestly? No one can tell the difference.

Why Homemade Shutters from Pallets Actually Work

Let’s be real, pallet shutters aren’t for everyone. If you need functional shutters that actually open and close, or if you’re dealing with strict HOA design standards, this might not be your project.

But if you want decorative farmhouse shutters that add serious curb appeal for almost nothing, this is it.

Here is a quick comparison of DIY vs Actual cost.

We had leftover pallets from a previous project (Jim always saves stuff “just in case,” and for once it paid off).

They were a bit dirty but structurally sound.

How To Make Pallet Shutters: Step-by-Step Tutorial

Step 1: Measure Your Windows for DIY Window Shutters

Here’s the formula:

Shutter height = window trim height + 2 inches
Shutter width = whatever looks proportional (we did 12″ wide)

Step 2: Break Down and Prep Your Pallet Wood

Pallet wood is rough!

Sand everything before cutting, not after. It’s easier, and you won’t accidentally sand off your fresh stain later.

Use 120-grit sandpaper and focus on smoothing the surfaces that will show. The backs don’t matter since they’ll be against your siding.

Step 3: Cut Boards to Length for Window Shutters Exterior

We cut three vertical boards per shutter at our measured window height. The boards don’t need to be perfectly matched (in fact, slight variations add to the rustic farmhouse look), but they should be close.

Pro tip: Cut all your pieces at once if you’re making multiple shutters. It’s way more efficient than cutting as you go.

Related: See our tutorial on how to measure for shutters and what size you should have

Step 4: Assemble Pallet Shutters with Cleats

Here’s the construction method: three vertical boards connected by two horizontal cleats (one at the top, one at the bottom).

The cleats go on the back side.

We left about 1/4″ gaps between the vertical boards for that classic shutter look. Jim used a scrap piece of wood as a spacer to keep the gaps consistent.

Use two screws per board, per cleat (so six screws total per cleat). This keeps everything from warping when the wood expands and contracts with weather changes.

Check with a speed square to make sure everything’s actually square. Pallet wood likes to twist, and you’ll notice if your shutters are crooked once they’re up.

All three sets took about an hour to build. We made an extra pair for our shed because, why not?

Step 5: Stain Pallet Shutters to Look Like Cedar

This is where cheap pallet wood starts looking like expensive cedar shutters.

We used Minwax Satin Polyurethane in Pecan (it’s a stain and sealer in one). Two coats gave us that warm cedar tone.

Disposable foam brushes work fine for this. Don’t overthink it. The wood’s already rough and rustic, so you’re not going for a furniture-grade finish here.

Let them dry completely (overnight is best) before mounting. The stain needs to cure properly or you’ll have sticky spots for weeks.

Step 6: Mount Your Outdoor Shutters to Siding

We used 6″ decorative black lag screws because they’re both functional and add a nice detail. Here’s the mounting process Jim figured out:

1. Hold shutter in place and mark screw locations on siding with pencil
2. Pre-drill pilot holes (slightly smaller than your lag screws)
3. Drive lag screws through shutter into siding, hitting studs if possible
4. Use a level between each screw to keep things straight

The lag screws go through the horizontal cleats into your siding. Two screws per shutter (top and bottom) is plenty since these are decorative, not functional.

Functional vs. Decorative Window Shutters: What You Need to Know

Let’s address the elephant in the room: these window shutters DIY don’t actually close. They’re permanently mounted to the siding.

Could you make them functional?

Sure, with hinges.

But here’s the thing—most exterior shutters in America are decorative anyway. Real functioning shutters need to be sized correctly, hinged properly, and actually used (otherwise they’re just… decorative shutters with fancy hardware).

We went with direct mounting for a few reasons: simpler construction, no hardware to maintain, and honestly, we were never going to actually close them. If your goal is curb appeal (which is what most people want), decorative farmhouse shutters do the job perfectly.

Farmhouse Shutters Before and After Transformation

Remember that sad little house from the beginning? Here’s what $40 worth of DIY exterior shutters did for it:

The white siding with those cedar-toned outdoor shutters completely changed the exterior.

We also did board and batten accents (which I’ll write about separately), but the shutters were the finishing touch that pulled together the whole farmhouse look.