Renovation ROI Calculator

Work out renovation roi instantly with clear inputs, formula shown and shareable results.

About Renovation ROI Calculator

Renovation return has two components: the uplift in capital value and any increase in rent. Capital return is the value gain over cost, while the rent view expresses the same spend as a payback period. A project that looks marginal on value alone often justifies itself once the rental uplift is counted.

Formulas

Renovation return

Return = (value increase - cost) / cost x 100

Rent payback

Months = cost / monthly rent increase

Worked example

With the default values below, Renovation ROI Calculator returns Return on renovation of 50.00%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Renovation costminimum 0.01: 800,000
Expected increase in valueminimum 0: 1,200,000
Increase in monthly rentminimum 0: 5,000

Results

Return on renovation: 50.00% %
Net value gain: $400,000.00
Payback from rent alone: 160.0 months
Return including one year of extra rent: 57.50% %

Step by step

1Values used
2Renovation return
3Rent payback
4Return on renovation= 50.00 %
5Net value gain= 400,000.00
6Payback from rent alone= 160.0 months
7Return including one year of extra rent= 57.50 %

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Renovation ROI figure worked out?

Return = (value increase - cost) / cost x 100. Renovation return has two components: the uplift in capital value and any increase in rent.

Which renovations recoup best?

Kitchens, bathrooms and anything that adds usable floor area recoup most. Highly personalised finishes, swimming pools and over-specification relative to the street recoup least.

What values do I need to enter?

This calculator takes 3 inputs: Renovation cost, Expected increase in value, Increase in monthly rent. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.