Saqib Hanif is the CEO and founder of Calculator Value. He builds calculators and educational content across sports, math, and science, and supports a limited set of construction-related calculators. Read full profile
Our Home Renovation ROI Calculator provides research-based estimates using industry data from leading real estate and remodeling sources. The calculator uses the following formula:
The calculator considers three quality levels, each with different typical return ranges:
For a standard kitchen renovation costing $30,000 on a home valued at $300,000 with an average return of 65%:
$30,000 × 0.65 = $19,500$300,000 + $19,500 = $319,500$30,000 - $19,500 = $10,500These assumptions are calibrated using recent Cost vs. Value data (for example, Remodeling Magazine's 2024 Cost vs. Value Report) and summaries from organizations such as the National Association of Realtors. The calculator also accepts market-specific return rate inputs for users with local market knowledge or professional estimates.
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.
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:
Net Cost After Value Added = Renovation Cost − Value AddedHome Value Increase (%) = (Value Added / Home Value) × 100Payback Period (years) = Net Cost / (Value Added × 5% annual appreciation)Let’s walk through how to use our calculator to estimate your return on your renovation investment:
Step-by-step:
(e.g., $300,000)(e.g., $20,000)Kitchen Remodel")Standard Moderate improvements — (Suppose you choose this option)"Use Market-Specific Return Rate" to enter your own ROI percentage from local real estate or contractor estimates.58.6%$11,720$311,720$8,2803.91%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 | 105% | 114% | 98% |
| 6 | Wood Deck Addition | 70% | 75% | 65% |
| 7 | Window Replacement | 65% | 70% | 60% |
| 8 | Attic Insulation | 95% | 100% | 85% |
| 9 | Manufactured Stone Veneer | 190% | 208% | 175% |
| 10 | HVAC System Upgrade | 60% | 66% | 55% |
Whether you are a real-estate investor or a homeowner, one of the biggest questions that always pops into your head is:
"How much value will the renovation add to my house?"
Determining your home’s worth after renovation is a crucial factor for real-estate investing and for personal home improvement. This post-renovation value is known as the After Renovation Value (ARV).
ARV is the new estimated market value of your home after all renovations and upgrades are completed.
This helps you understand:
Here is how you can estimate your After Renovation Value (ARV). The formula is:
After Renovation Value (ARV) = Current Home Value + Value Added From Renovation
It contains:
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 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%)
Estimating ROI after renovation is a major factor in determining the value added. Here is the formula:
ROI (%) = (Value Added ÷ Renovation Cost) × 100
The following steps show the calculation:
ARV - Current Value100 to get ROI %.Average ROI after home improvements depends on several crucial factors, especially the type of project, such as:
180 to 195%70 to 90%68 to 75%55 to 70%But on average, the ROI on improvements can be between 40% and 100%.
The ROI for a kitchen remodel depends on whether the upgrade is minor or major, the location, and the current market conditions.
The following shows the typical kitchen remodel ROI:
70 to 90% ROI40 to 55% ROI