Home Renovation ROI Calculator

Planning home renovations and curious about the return on investment (ROI)? Our Home Renovation ROI Calculator can provide a helpful estimate to inform your decisions.

A home renovation can significantly increase the value of your property, but the upfront costs can be substantial. It’s crucial to assess the potential ROI before proceeding with any renovation project. Our Home Renovation ROI Calculator assists users in doing just that. It compares the cost of a potential renovation with the estimated increase in home value, providing a percentage that indicates the ROI. For example, if you plan to renovate your kitchen for $20,000 and expect that the project will raise your home’s value by $30,000, your ROI would be 50%.

While our Home Renovation ROI Calculator provides an easy way to estimate the return on a home improvement project, it’s essential to understand that the actual ROI can depend on several other factors. The figures used for the cost of renovations and their expected impact on home value are often based on national averages or surveys of real estate professionals, which may not reflect the precise circumstances in your area. Furthermore, the actual ROI can vary based on factors such as the quality of the renovation work, the state of the local housing market, and how the improvement aligns with buyer preferences. Therefore, this tool should be used as a guide and part of a wider decision-making process, which could involve consultations with local real estate professionals or contractors.

How To Use Our Home Renovation ROI Calculator

1

Input Your Home's Current Value

Enter the estimated current market value of your home. This is the price at which you could reasonably expect to sell your home in the current market. You might base this on recent sales of similar homes in your area, or you might have a recent appraisal to base this on.

2

Input Remaining Mortgage Balance

Next, enter the amount you still owe on your mortgage. This is the remaining balance that would need to be paid off if you were to sell your home.

3

Calculate and Evaluate the Output

The calculator will subtract your mortgage balance from your home's value to find your estimated home equity. This is the portion of your home's value that you truly own, and it represents wealth that you might be able to access through selling your home or through certain types of loans. Remember that this is a simplified tool, and it's always a good idea to consult with a real estate professional or a financial advisor for a comprehensive understanding of your home equity.

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Home Renovation ROI Calculator