Home Renovation ROI Calculator
Estimate the return on investment (ROI) for your home renovation project by comparing your costs against the expected increase in home value.
Formulas Used
Cost Recouped (Simple ROI):
Cost Recouped (%) = (Expected Value Increase ÷ Renovation Cost) × 100
Net Value Gain:
Net Value Gain = Value Increase − (Value Increase × Selling Cost %)
Total Investment:
Total Investment = Renovation Cost + Financing Cost
Net ROI:
Net ROI (%) = ((Net Value Gain − Total Investment) ÷ Total Investment) × 100
Net Profit / Loss:
Net Profit/Loss = Net Value Gain − Total Investment
Assumptions & References
- Value increase estimates are subjective; consult a licensed appraiser or real estate agent for accuracy.
- Selling costs (default 6%) include typical agent commissions (~5–6%) and closing costs (~1–2%); adjust for your market.
- Selling costs are applied proportionally to the renovation-driven value increase only.
- Industry ROI benchmarks are sourced from the Remodeling Magazine Cost vs. Value Report (annual, U.S. averages).
- ROI does not account for personal enjoyment value, energy savings, or reduced maintenance costs.
- Financing costs should include total interest paid over the loan term (e.g., home equity loan or HELOC).
- Tax implications (e.g., capital gains exclusion, cost basis adjustments) are not included — consult a tax advisor.
- Results are estimates only and should not substitute for professional real estate or financial advice.