Renovation ROI Calculator
See which home improvements add the most value
Last updated: January 2025
About This Tool
The renovation ROI calculator helps homeowners understand which home improvement projects add the most value. Not all renovations are created equal - some recover more of their cost than others when you sell.
What is Renovation ROI Calculator?
Renovation ROI measures how much value a home improvement project adds compared to its cost. A project with 80% ROI means you recover 80 cents of every dollar spent when selling. This calculator helps you prioritize projects that maximize your homes value.
How It Works
Select renovation projects you are considering. Each project has an average cost and typical ROI based on national data. The calculator totals your costs, estimates the value added to your home, and shows your net return and overall ROI.
Formula
Value Added = Project Cost x ROI %; Net Return = Value Added - Total Cost
Select Renovation Projects
Investment Summary
Total Cost
$45,000
Value Added
$34,250
Net Return
-$10,750
Average ROI
76%
New Home Value
$434,250
+$34,250 added
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When to Use This Calculator
- 1When planning renovations before selling your home
- 2To prioritize which improvements to make with limited budget
- 3When deciding between multiple renovation options
- 4To justify renovation spending to yourself or partners
- 5When flipping houses to maximize profit
Pro Tips
- •Minor kitchen and bathroom updates often have better ROI than major remodels
- •Curb appeal projects (garage door, entry door, siding) have high ROI
- •Over-improving for your neighborhood limits returns
- •Maintenance and repairs often have better ROI than luxury upgrades
- •Energy-efficient upgrades can pay back through utility savings too
Common Mistakes to Avoid
- •Assuming all renovations add value equal to their cost
- •Over-personalizing with niche tastes that buyers may not share
- •Spending too much relative to home value and neighborhood
- •Ignoring necessary repairs to fund cosmetic upgrades
- •Not getting permits which can cause problems at sale