Renovation ROI Calculator
Find out if your renovation adds value — and how much. Enter purchase price, renovation cost and expected sale price to see your profit, ROI and payback period.
Need to estimate renovation costs first? Use the Renovation Cost Estimator →
Quick Start
Tip: Use the Renovation Cost Estimator to get an accurate renovation budget before entering it here.
Project
Property
After Renovation
Common renovation ROI questions
Does home renovation increase property value?+
It depends on the renovation type. Kitchen and bathroom upgrades typically return 60–80% of their cost in added value. Kerb appeal improvements (painting, landscaping) can return over 100%. Highly personalised renovations often return less than 50%.
What is a good ROI for a home renovation?+
A renovation ROI above 70% is generally considered good. ROI above 100% means the renovation adds more value than it costs — rare, but possible in rising markets. ROI below 50% means you're unlikely to recoup costs on sale alone.
How do I calculate renovation ROI?+
ROI = (Value added ÷ Renovation cost) × 100. Value added = sale price after renovation minus purchase price. Net profit also subtracts purchase costs, selling costs and any loan interest.
Is it better to sell or rent after renovating?+
If your net rental yield exceeds 5–6% of total investment, renting is usually more profitable long-term. In fast-appreciating markets, selling can deliver a better short-term return. Use the Rent tab to compare both scenarios side by side.
How renovation ROI is calculated
The method
This calculator uses the standard property investment ROI formula: ROI = (Net profit ÷ Total investment) × 100. Net profit is the sale price minus purchase price, purchase costs, renovation costs and selling costs.
What's included in total investment
Purchase price + purchase costs (stamp duty, legal fees) + total renovation cost. If you finance the renovation with a loan, interest paid over the loan term is added to the cost.
Rental yield formula
Gross yield = Annual rent ÷ Total investment × 100. Net yield = (Annual rent − Annual running costs) ÷ Total investment × 100. A net yield above 5% is generally considered attractive in most markets.