DayCents

Mortgages

Home Renovation ROI Calculator

Almost no renovation returns more than it costs — the useful question is how much of it you get back. A project that recoups 70% costs you 30 cents on the dollar to enjoy, which is a perfectly good reason to do it, as long as you knew.

Tested against worked examplesHow we verify

Ask an agent what it would add to your sale price — not what it cost.

Share of cost recouped: 72%

Share of cost recouped

72%

The rest is what you pay for the enjoyment.

Net cost to you
$7,000
Project cost
$25,000
Value added
$18,000
Project cost$25K
Recouped at sale$18,00072%
Net cost$7,00028%

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Compare scenariosTry three values of one input
Home Renovation ROI Calculator results for three values of Project cost
Project cost
Share of cost recouped78.26%72%6.26%64.29%13.98%
Net cost to you$5,000$7,000+$2,000$10,000+$5,000
Project cost$23,000$25,000+$2,000$28,000+$5,000

Every other input stays at the value you set above — currently $25,000 for project cost. Differences are measured against the first column.

Saved scenariosSave this calculation

Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.

How this calculator works

Recouped share = value added ÷ project cost. Net cost = project cost − value added; a negative net cost means the project adds more than it consumed.

Both figures are yours to supply, since value added is local and specific. Nothing here accounts for the enjoyment of the improvement, ongoing maintenance, or property tax reassessment, which can rise after significant work.

What this assumes

  • Resale value added is the figure you enter. Published national averages exist but vary enormously by market and by finish quality.
  • No allowance for the cost of borrowing to fund the work, or for living elsewhere during it.
  • It measures resale value, not enjoyment — which is a legitimate reason to renovate and one no calculator prices.

What changes this number

Project type
Kitchens and bathrooms recoup more than additions on average; the spread between best and worst is large.
Local market
The same renovation returns very differently in a market where buyers expect it and one where they do not.
Over-improving
Spending past the ceiling of your street rarely returns; the neighbourhood caps the resale value.

A worked example

Take the $25k kitchen adding $18k scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Project cost
$25,000
Value added to the home
$18,000

What it returns

Share of cost recouped
72%
Net cost to you
$7,000
Project cost
$25,000
Value added
$18,000

Try an example

Frequently asked questions

Which renovations recoup the most?

Industry cost-versus-value surveys consistently put unglamorous exterior work at the top — garage door replacement, entry doors, siding, and minor kitchen refreshes often recoup 70–100%. Full kitchen and bathroom remodels, additions, and anything highly personalised tend to return considerably less.

Why do most projects recoup less than 100%?

Because buyers pay for the house, not the invoice. Labour, permits, and your contractor's margin are real costs that leave no trace in an appraisal. Renovations also start ageing immediately, so a kitchen finished five years before you sell is no longer new to the buyer.

Should I renovate before selling?

Usually only the cheap, high-signal work: paint, fixing what is broken, cleaning up the exterior, decluttering. Large projects rarely return their cost on a short timeline, and buyers often prefer to choose their own finishes. If you are staying for years, enjoyment is the better justification.

How do I estimate the value added?

Ask a local agent what comparable homes with and without the feature actually sell for — the gap is your figure. Do not use the project cost as a proxy; that is the assumption this calculator exists to test.

Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.