Are you planning a home renovation and wondering whether upgrades like kitchen remodeling, basement finishing, or window replacement will pay off? That's exactly what our Home Renovation ROI (Return on Investment) Calculator is built for. It helps you make smarter, data-backed and confident decisions that maximize your investment’s return.
In this article, we will cover:
Home Renovation ROI (Return on Investment) is a method to calculate how much of your renovation investment will increase the market value of your home. It is expressed as a percentage.
The formula used to calculate home renovation ROI is quite straightforward:
ROI (%) = (Value Added to Home / Renovation Cost) × 100
We use additional parameters to make the calculator more accurate and precise. Our calculator incorporates industry-average ROI percentages for different types of renovations such as kitchen remodeling, bathroom remodeling, roof replacement etc.
Note: We use real average data sourced from the National Association of Realtors and Remodeling Magazine.
Moreover, our calculator also calculates:
Let’s walk through how to use our calculator to estimate your return on renovation investment:
Step-by-step:
300,000 dollars)20,000 dollars)Kitchen Remodel")Standard Moderate improvements — (Suppose you choose this option)58.6%11,720 dollars311,720 dollars8,280 dollars3.91%6.67%14.1 yearsHere are the renovation upgrades with the highest average ROI, based on Remodeling Magazine's 2024 Cost vs. Value Report
| Rank | Renovation Type | Basic (%) | Standard (%) | Premium (%) |
|---|---|---|---|---|
| 1 | Garage Door Replacement | 180% | 194% | 160% |
| 2 | Steel Entry Door Replacement | 170% | 188% | 150% |
| 3 | Minor Kitchen Remodel | 80% | 86% | 75% |
| 4 | Midrange Bath Remodel | 65% | 67% | 60% |
| 5 | Fiber Cement Siding | 85% | 90% | 80% |
| 6 | Wood Deck Addition | 70% | 75% | 65% |
| 7 | Window Replacement | 65% | 70% | 60% |
| 8 | Attic Insulation | 95% | 100% | 85% |
| 9 | Manufactured Stone Veneer | 80% | 85% | 75% |
| 10 | HVAC System Upgrade | 60% | 66% | 55% |
A good ROI typically falls between 50% and 80%. As a rule of thumb, focus on projects that are low‑cost, high‑return, and high‑impact. For example, you can expect a 50 to 80 dollars increase in home value for every $100 invested.
The payback period is the time (in years) required to recover your net renovation cost, assuming a 5% annual appreciation on the added value. Here is the formula for payback:
Payback = Net Cost ÷ (Value Added × 5%)