Home Improvement ROI Calculator
Calculate the potential return on your renovation investment
Investment Summary
ROI Percentage
Net Profit/Loss
Understanding Renovation ROI
When planning a home remodel, understanding the Return on Investment (ROI) is crucial for maintaining your property's equity. ROI is a financial ratio used to calculate the efficiency of an investment compared to its cost.
How to Calculate ROI for Home Improvements
The formula used by this calculator is:
Typical High-ROI Projects
According to real estate data, not all renovations are created equal. Some common projects and their average returns include:
- Minor Kitchen Remodel: Often yields between 75% to 85% ROI.
- Garage Door Replacement: Consistently one of the highest returns, often exceeding 90%.
- Siding Replacement: Fiber-cement or vinyl siding usually offers an 80% ROI.
- Window Replacement: Energy-efficient windows typically return 70% to 75%.
Example Calculation
Suppose you spend $20,000 on a minor bathroom upgrade. A local appraiser estimates this will increase your home's resale value by $14,000. In this case:
- Cost: $20,000
- Increase: $14,000
- ROI: -30% (You recoup 70% of the cost)
While a negative ROI percentage is common in home improvements (as you are also paying for your own enjoyment/utility), projects with higher percentages are better for short-term resale strategies.