Home appreciation calculator
Enter what a home was worth then and now with the years between to get its compound annual growth rate, or enter a value, a yearly rate and a number of years to see where it could end up.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Pick Find the yearly rate or Project a value.
- For the rate, enter the starting value, today’s value and the years between.
- For a projection, enter today’s value, a yearly rate and the years.
How it works
Compound annual growth rate = (value now ÷ value then)^(1 ÷ years) − 1. A projection uses value × (1 + rate)^years. The total change is the end value ÷ the start − 1, and the gain is the difference in money.
Worked example
A home bought at 100,000 is worth 121,000 after 2 years. 1.21^(1/2) = 1.1, so the average growth is 10% a year, a total of 21% or 21,000. Projecting 100,000 forward at 10% for 2 years gives the same 121,000.
Tips
- Use the same basis for both values, for example both market estimates or both sale prices.
- A short period can mislead: a few years of a boom or a dip say little about the long run.
- The same maths works for any asset; see the CAGR calculator.
Frequently asked questions
How do I calculate home appreciation per year?
Divide today's value by the starting value, raise it to the power 1 ÷ years, subtract 1 and multiply by 100. A home worth 250,000 that is now worth 340,000 after 8 years grew by 3.92% a year.
Why not just divide the total gain by the years?
Growth compounds. A 36% total gain over 8 years is 3.92% a year compounded, not 4.5%. The compound rate is the one that reproduces the end value when applied every year.
Is the projected value a forecast?
No. It assumes a steady rate, which real prices never follow. It shows what a rate would mean in money, so treat it as an illustration.
Does this include costs of owning the home?
No. It looks only at the change in value, not at purchase costs, repairs, taxes or mortgage interest.