Home Improvement ROI Calculator
Calculate the return on investment for home improvement projects.
See how much value renovations add to your home compared to their cost.
Home improvement ROI measures how much of the project cost is recovered in increased home value at resale. Not all renovations return their cost — some are lifestyle improvements that add little to resale value, while others (like garage door replacements) recover nearly 100% of cost.
ROI formula:
ROI (%) = (Value Added ÷ Project Cost) × 100
Net Cost = Project Cost − Value Added
Break-Even Years = Net Cost ÷ Annual Savings (for energy projects)
Remodeling Magazine Cost vs. Value Report — US averages (2024):
| Project | Average Cost | Resale Value Added | ROI |
|---|---|---|---|
| Garage door replacement | $4,500 | $8,751 | 194% |
| Entry door (steel) | $2,355 | $4,430 | 188% |
| Minor kitchen remodel | $27,492 | $26,406 | 96% |
| Siding replacement (fiber cement) | $20,619 | $18,347 | 89% |
| Deck addition (wood) | $17,615 | $14,596 | 83% |
| Major kitchen remodel | $80,809 | $45,064 | 56% |
| Bathroom addition | $57,564 | $31,000 | 54% |
| Master suite addition | $164,077 | $80,015 | 49% |
| Sunroom addition | $75,000 | $33,000 | 44% |
Worked example: A homeowner spends $28,000 on a mid-range kitchen remodel:
- Expected resale value added: $28,000 × 0.96 = $26,880
- Net cost (money not recovered): $28,000 − $26,880 = $1,120
- If they stay 10 years, the enjoyment value often justifies the net cost even when ROI < 100%
High-ROI principles:
- Curb appeal projects consistently outperform interior upgrades in ROI
- Energy efficiency improvements (insulation, windows) offer ongoing savings that improve true ROI over time
- Over-improving for the neighborhood is the most common ROI mistake — the neighborhood sets a ceiling on resale value
Market dependency: ROI varies significantly by location. A kitchen remodel in San Francisco returns differently than the same remodel in rural Ohio. Always research local comps before committing to a major project.