How to Calculate Home Renovation ROI: Which Home Improvements Add the Most Value Before Selling

Not all home renovations are created equal. A kitchen remodel might cost $25,000 but only add $18,000 to your home’s resale value (72% ROI), while a garage door replacement costing $4,000 might return $3,800 (95% ROI). Understanding which projects give you the best return is essential before you invest time and money.

Use the ROI Calculator to evaluate any home improvement project by comparing the cost against the expected increase in property value.

Renovation ROI: Which Projects Pay Off Most?

Based on the latest Remodeling Cost vs Value report, here are average ROI percentages for common projects:

Project	Average Cost	Resale Value	ROI
Garage Door Replacement	$4,000	$3,800	95%
Manufactured Stone Veneer	$11,000	$10,400	94%
Entry Door Replacement (Steel)	$2,200	$2,000	91%
Minor Kitchen Remodel	$27,000	$23,000	85%
Siding Replacement	$17,000	$14,500	85%
Window Replacement (Vinyl)	$20,000	$15,500	78%
Major Kitchen Remodel	$80,000	$55,000	69%
Bathroom Remodel	$25,000	$16,000	64%
Home Office Addition	$55,000	$30,000	55%
Backup Power Generator	$19,000	$10,000	53%

How to Calculate Renovation ROI

The formula is simple: ROI = (Resale Value – Cost) / Cost × 100%

Example: A minor kitchen update costs $27,000 and adds $23,000 to your home’s value.
ROI = (23,000 – 27,000) / 27,000 × 100% = 85%

Note that ROI over 100% is rare. Most home improvements recoup less than their full cost. The value is in making your home more enjoyable while you live there and easier to sell when the time comes.

Low-Cost, High-Impact Improvements

• Fresh paint (neutral colors): $500–2,000, 100%+ ROI in buyer appeal
• New hardware (cabinet pulls, faucets, light fixtures): $300, 80–100% ROI
• Curb appeal landscaping: $1,500–5,000, up to 100% ROI
• Deep cleaning and decluttering: $300–500, intangible but critical for showings
• Smart home upgrades (thermostat, doorbell): $300–600, 60–80% ROI

Use the ROI Calculator Before You Start

Before committing to any renovation, use the ROI Calculator to estimate your return. Combine it with the Loan Calculator to figure out how financing the renovation would affect your monthly budget. Data-driven decisions lead to better outcomes — both for your home’s value and your family’s finances.