Renovation ROI Calculator
Compare what a renovation costs against the value it adds, after selling commission, to see the real return and whether the work pays for itself.
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Renovations are sold on the promise that they add more value than they cost. Some do. Many return well under what was spent, and the ones that reliably pay are usually smaller and duller than the ones people want to do.
The honest calculation subtracts selling commission from the uplift, because you pay a percentage on the higher price too. Overruns matter as well, so the calculator lets you add a contingency and see the return on the realistic cost rather than the quote.
The calculation
Realistic cost = quote × (1 + contingency). Net uplift = value added × (1 − commission), because commission is charged on the higher sale price. Return = (net uplift − realistic cost) ÷ realistic cost.
Worked example
A 20,000 kitchen with a 10% contingency realistically costs 22,000. If it adds 26,000 of value, 5% commission takes 1,300, leaving a net 24,700. The gain is 2,700 — a return of about 12%, not the 30% the raw numbers suggested. To break even at all, the work has to add at least 23,158.
What tends to pay and what does not
Fixing what is broken, improving presentation, and adding usable space in the existing footprint tend to return their cost. Highly personal finishes, over-specification for the street, and swimming pools in cool climates usually do not. The ceiling is the best price the street supports, however good the work.
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Create your free property pageFrequently asked questions
Which renovations add the most value?
Across most markets it is the unglamorous ones: sound roof and services, a clean functional kitchen and bathroom, decoration and kerb appeal. Buyers price down visible problems far harder than they price up luxury finishes.
How much contingency should I allow?
Ten percent on cosmetic work and twenty or more on anything structural or in an older building. Opening up walls and floors reveals problems that were not in the quote, and those discoveries are rarely cheap.
Does adding space always pay?
Only up to the ceiling price for the street. If comparable homes cap out near a certain value, an extension that pushes past it will not usually recover its cost, however well built. Check what the largest homes nearby actually sold for.
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