Home Renovation ROI Calculator
Not all home improvements return their cost at resale. Understanding which renovations deliver the highest return on investment helps homeowners prioritize projects and helps contractors advise clients effectively. This calculator uses data based on Remodeling Magazine’s annual Cost vs. Value Report and industry averages to estimate the value added by common renovation types.
Estimate Renovation ROI
ROI estimates based on national averages from Remodeling Magazine Cost vs. Value Report (2024–2025) and industry data. Actual returns vary by local market conditions, quality of work, home price tier, and buyer preferences. Projects in hot real estate markets and mid-range homes typically recoup more than luxury upgrades in soft markets. These figures represent estimated value at time of sale, not guaranteed appraisal increases.
Average ROI by Renovation Type
| Renovation | Avg. Cost | Avg. Value Added | ROI |
|---|---|---|---|
| Garage Door Replacement | $4,300 | $4,100 | 95.0% |
| Entry Door Replacement | $2,200 | $2,000 | 90.9% |
| Kitchen Remodel (Minor) | $26,800 | $22,700 | 84.7% |
| Siding Replacement | $19,600 | $15,300 | 78.1% |
| Attic Insulation | $2,500 | $1,900 | 76.0% |
| Window Replacement | $22,400 | $16,100 | 71.9% |
| Deck Addition | $17,600 | $12,300 | 69.9% |
| Roof Replacement | $30,900 | $20,200 | 65.4% |
| Bathroom Remodel | $25,300 | $16,200 | 64.0% |
| Kitchen Remodel (Major) | $77,900 | $46,700 | 59.9% |
| Basement Finish | $52,100 | $27,600 | 53.0% |
Factors That Affect Renovation ROI
- Local market conditions — renovations in seller’s markets and high-demand neighborhoods recoup more than identical projects in soft markets. Curb appeal projects (siding, entry door, garage door) consistently perform well across all markets.
- Over-improvement risk — spending $80,000 on a kitchen in a neighborhood where homes sell for $250,000 rarely recoups the investment. The general rule: keep any single renovation under 10–15% of home value for best ROI.
- Quality of work — poor workmanship or non-permitted renovations can actually decrease home value. Licensed, permitted, and inspected work commands the highest returns.
- Mid-range vs. upscale — mid-range renovations consistently deliver higher ROI percentages than upscale versions of the same project. A $27,000 minor kitchen remodel recoups ~85% while a $78,000 major remodel recoups ~60%.
- Time of sale — renovations completed 1–3 years before sale maximize return. Too recent and buyers discount for “settling” concerns; too old and finishes look dated.
Strategic Renovation Planning
- Fix deficiencies first — addressing deferred maintenance (roof leaks, old HVAC, foundation issues) prevents value loss before adding value through cosmetic upgrades.
- Curb appeal delivers — exterior projects (garage door, entry door, siding) consistently rank among the highest-ROI renovations because they create immediate visual impact for buyers.
- Kitchens and bathrooms sell homes — while major kitchen remodels have moderate ROI percentages, updated kitchens reduce days on market and prevent price reductions, which indirectly protects total sale value.
- Energy efficiency adds value — insulation, windows, and energy-efficient systems reduce operating costs and increasingly matter to buyers. Many markets now require energy disclosures that highlight these improvements.
Frequently Asked Questions
Which renovation has the highest ROI?
Garage door replacement consistently tops the list at approximately 95% cost recouped, followed by entry door replacement at approximately 91%. These are relatively low-cost projects with outsized impact on curb appeal. Among larger projects, minor kitchen remodels lead at approximately 85% ROI.
Should ROI be the only factor in choosing a renovation?
No. ROI matters most if you plan to sell within a few years. If you plan to stay long-term, quality of life, energy savings, and personal enjoyment are equally valid reasons to renovate. A finished basement with 53% ROI may be well worth it if your family uses the space daily for the next decade.
Do these numbers apply to my specific home?
National averages provide useful benchmarks but every home and market is different. Factors like your home’s current condition, neighborhood comparable sales, local buyer preferences, and the quality of the renovation all affect actual returns. Consult a local real estate professional for market-specific advice before making major renovation investment decisions.