# Home Appreciation Calculator

With this home appreciation calculator you are able to find out how the value of your home has changed over a time. You can also use it to estimate the annual appreciation rate of your home.

Select whether you would like to calculate the future value of your home or the home value appreciation rate using the drop-down menu. Then complete all the required fields below and click "Calculate".

Home Appreciation Calculator | Future Home Value Calculator

Results

## Appreciation Formula

The home appreciation calculator uses the following basic formula:

A = P × (1 + R/100) n

• Where,
• A is the value of the home after n years,
• P is the purchase amount,
• R is the annual percentage rate of appreciation,
• n is the number of years after the purchase.

### Example:

A house was bought for \$200.000 in January 2014. In January 2019, it was valued at \$250.000. Calculate the average annual percentage rate of appreciation.

Solution:

• A = \$250000,
• P = \$200000,
• n = 5.

The value of the home after n years, A = P × (1 + R/100) n

Let's suppose that the multiplying factor is k

• \$250000 = \$200000 × k 5
• k = (\$250000 / \$200000) 1/5 = 1.0456
• 1.0456 = (1 + R/100)
• (1.0456 − 1) × 100% = 4.56%

Answer: The annual appreciation rate is 4.56%.