Will that remodel pay for itself when you sell? Pick a project type or enter your own value estimate to see how much of the cost you can expect to recoup, your ROI, and how the same budget compares across common projects.
Last updated:
Project
$
$
Optional: interest you'll pay if you borrow.
Value added based on
%
Leave blank to use the typical figure for the project type.
$
From an appraiser or local agent.
Home & extras
$
$/ yr
years
Enter your values to see the result.
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How to use the Home Renovation ROI Calculator
Pick the project type and enter what it will cost.
Keep the typical recoup % or switch to your own estimate of value added.
Add your home's value, any yearly savings and how long you'll stay.
Calculate to see ROI, value added and net gain or loss.
Scan the comparison table to see what the same budget might return on other projects.
Renovation ROI formulas
Value added = project cost × recoup % (or your appraiser's estimate)
Cost recouped = value added ÷ total cost
ROI = (value added − total cost) ÷ total cost × 100
ROI with savings = (value added + yearly savings × years − total cost) ÷ total cost × 100
Example: a $28,000 minor kitchen remodel that recoups about 85% adds roughly $23,800 of value, a net of −$4,200 and an ROI of −15%.
Typical recoup % used as defaults
Project
Planning default
Garage door replacement
~100%
Entry door replacement (steel)
~100%
Manufactured stone veneer
~100%
Minor kitchen remodel (midrange)
~85%
Siding replacement
~80%
Deck addition (wood)
~75%
Window replacement
~65%
Bathroom remodel (midrange)
~65%
Roof replacement (asphalt)
~60%
Major kitchen remodel (midrange)
~50%
Bathroom remodel (upscale)
~45%
Major kitchen remodel (upscale)
~35%
Primary suite / room addition
~30%
These rounded figures follow the general pattern of recent US national cost-versus-value surveys, which are updated every year and differ by region. Use them as a starting point and replace them with local estimates when you can.
Tips for a better return
Fix what buyers notice first: curb appeal, a dated kitchen, worn floors and anything an inspection would flag.
Match the finish level to the neighborhood; mid-range usually recoups more than luxury.
Get two or three quotes, and add 10–20% contingency for surprises.
Keep receipts. Capital improvements raise your cost basis, which can lower capital gains tax when you sell.
Frequently asked questions
How do you calculate the ROI of a home renovation?
ROI = (value added − project cost) ÷ project cost × 100. Value added is how much more the home would sell for because of the project. A related figure, cost recouped, is value added ÷ cost; 80% recouped means an ROI of −20%.
Which home improvements have the best return?
In recent US cost-versus-value surveys, smaller exterior projects such as garage door and entry door replacements, stone veneer and siding have recouped the highest share of their cost, while large upscale kitchen remodels and additions recoup the least. Results vary a lot by region and year.
Where do the typical recoup percentages come from?
They are rounded planning defaults in line with recent national US surveys of remodeling cost versus resale value. They are averages, not appraisals. For a real decision, ask a local agent or appraiser what the project would add to homes in your neighborhood, then use the 'My own value estimate' option.
Is a negative renovation ROI a bad investment?
Not necessarily. Most remodels recoup less than they cost, but you also get years of use and enjoyment, and some projects (a new roof, windows) prevent bigger problems or lower energy bills. ROI matters most if you plan to sell soon.
What is over-improving a home?
Over-improving means spending so much that your home becomes far more expensive than nearby homes. Buyers compare with the neighborhood, so value added tends to flatten out. The calculator flags projects that cost more than about 15% of the home's value as a reminder to check local prices.
Should I include financing costs?
Yes, if you'll borrow with a HELOC, personal loan or card. Interest and fees are part of the real cost, so adding them gives a more honest ROI.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.