HonestCasa logoHonestCasa
Renovation ROI Tool

Home Improvement ROI Calculator

Estimate the value your renovation projects add to your home. Compare financing options to make the smartest investment decision.

Expected ROI

85.7%

Industry average for this project

Value Added

$22,282

Estimated home value increase

Net Gain/Loss

-$3,718

Cost exceeds value added

Home Value Impact
How this project affects your home's value
Current Home Value$400,000
+ Value Added$22,282
New Home Value$422,282

Payback Period

0.3 years

Time to recoup the loss through home appreciation (assuming 3.5% annual growth).

Note: ROI percentages are based on national averages. Actual returns vary by location, quality of work, and market conditions.

Financing Comparison
HELOC vs. paying cash from savings

Finance with HELOC

Monthly Payment$256
Total Interest Paid$20,086
Total Paid$46,086
Value Added$22,282
Net Benefit+$2,196
True ROI8.4%

✓ Keep cash for emergencies
✓ Interest may be tax deductible
✗ Monthly payment obligation

Pay Cash (Savings)

BETTER OPTION
Monthly Payment$0
Opportunity Cost$6,547
Total Cost$26,000
Value Added$22,282
Net Benefit+$15,735
True ROI60.5%

✓ No monthly payments
✓ No interest costs
✗ Depletes emergency fund

Recommendation: Paying cash saves $13,539 in interest costs and avoids monthly payments.

Project Details

Update with new appliances, countertops, and cabinet refacing

Average: $26,000

Used to calculate opportunity cost of using savings

Financing Options

What you'd earn if you kept money in savings/investments

Quick Tips

  • • Projects with 70%+ ROI typically add good value
  • • Minor updates often have better ROI than major renovations
  • • Curb appeal projects (doors, siding) have excellent ROI
  • • Over-improving for your neighborhood reduces ROI

Maximizing Your Renovation ROI

Not all home improvements are created equal. Some projects, like kitchen remodels and deck additions, typically offer a higher return on investment (ROI) than others.

Smart Renovation Tips:

  • Focus on Kitchens & Baths: These rooms often sell homes and typically have good ROI.
  • Don't Over-Improve: Keep your renovations in line with neighborhood standards to ensure you can recoup the cost.
  • Curb Appeal Matters: Projects like new siding, entry doors, and garage doors often have very high ROI.
  • Consider Financing Costs: Use this calculator to see if the value added outweighs the interest paid on a HELOC.

Fund Your Project with a HELOC

A Home Equity Line of Credit can be a flexible and affordable way to finance your renovations.