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🏠 Home Improvement ROI Calculator
Calculate Return on Investment for Renovations
Reviewed by Tom Sullivan
Real Estate Appraiser • 22 years • 6,000+ appraisals
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💡 Expert Tips from Tom Sullivan
- "Recoup value" doesn't mean profit: 80% ROI means spending $10k adds $8k value. You're still down $2k. Only time this works: if comp houses have updated kitchens and yours doesn't, you MUST upgrade to compete—not for profit, but to avoid losing $20k in sale price.
- Over-improving kills ROI: $80k kitchen in a $300k neighborhood? You'll get $30k back max. Buyers won't pay $380k for your house when identical homes sell for $330k. Rule: Never spend more than 10-15% of home value on single project.
2025 Renovation ROI Rankings
| Project | Avg Cost | Value Added | ROI |
|---|---|---|---|
| Garage Door Replacement | $3,900 | $3,700 | 94% |
| Minor Kitchen Remodel | $15,000 | $12,000 | 80% |
| Siding Replacement | $18,000 | $13,500 | 75% |
| Bathroom Remodel | $12,000 | $8,500 | 71% |
| Window Replacement | $12,000 | $8,000 | 67% |
| Deck Addition | $15,000 | $9,000 | 60% |
| Basement Finish | $35,000 | $19,000 | 54% |
⚠️ Common Mistakes
- Expecting 100% ROI: No renovation returns full cost. Even best projects (garage door 94%) lose 6%. Upgrade for enjoyment, not profit.
- Over-improving for neighborhood: $80k kitchen in $300k neighborhood? You'll get $30k back max. Don't exceed 10-15% of home value on one project.
- Ignoring opportunity cost: Spending $40k on renovation vs investing at 7% = $5,600/year lost returns. Only worth it if you stay 10+ years.