Planning · Resale value
Renovation ROI vs resale value.
Enter the cost and the value you expect it to add, and see the percent recouped, the net result after selling costs and the break-even value.
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Your return
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How this works
Not every renovation pays back at sale. This calculator compares what you spent with the value you expect it to add: percent recouped = value added / cost x 100. It then subtracts selling costs (agent fees, legal and similar, as a percent of the value added) to show the net result, and gives the break-even value gain = cost / (1 - selling cost percent). It contains no market data: you supply the value gain, for example from an appraisal or a local agent's opinion.
For a published benchmark, the annual Cost vs. Value report from the remodeling trade press compares project costs with resale value by region and project type. Look up the latest edition yourself for your region and project; this page does not reproduce its figures. Many renovations are worth doing for comfort, safety or energy savings even when the resale recoup is below 100 percent.
Worked example. A $30,000 renovation that you expect to add $22,000 of resale value recoups 73.3 percent of its cost. With 5 percent selling costs on that value ($1,100), the net value is $20,900, or 69.7 percent of the cost, a net result of -$9,100. To break even at sale it would need to add $31,579 of value.
Frequently asked questions
What is a good renovation ROI?
There is no single answer. Many projects recoup less than 100 percent of their cost at sale. Compare your own expected value gain with the cost, and weigh comfort and use value too.
Where do I get the value a renovation adds?
From an appraisal, a local real estate agent or recent comparable sales. This calculator does not provide market data, so you enter the number.
Why subtract selling costs?
Fees and costs of selling are paid out of the sale price, so the value a renovation adds is not all yours. The calculator takes your percentage off the value gain.
Does this replace a published cost versus value report?
No. Look up the latest published report for your region and project type. This page only does the arithmetic on numbers you enter.
Sources
Checked
- Method: arithmetic on the numbers you enter. No outside data or published figures are used.
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Planning note
Estimates only, not financial, legal or professional advice. You supply every price; this page contains no regional cost data. Confirm real costs with written quotes from licensed local contractors. Resale values depend on your market and are not guaranteed.