Boneyard Tools

Property Appreciation Calculator

Project how much a property could be worth after years of steady appreciation. Enter the current value, an expected annual rate and a time horizon to see the future value, the total gain and the percent increase.

How to estimate property appreciation

  1. Enter the current value of the property.
  2. Enter the expected annual appreciation rate as a percentage.
  3. Enter the number of years and read the future value and total gain.

Examples

300,000 home at 4% for 10 years

Current value 300,000, rate 4%, 10 years
Future value about 444,073, a gain of about 144,073 or 48.02%

Frequently asked questions

How is property appreciation calculated?

Future value equals current value times (1 plus the annual rate as a decimal) raised to the number of years. This compounds the appreciation each year, so the gain grows faster the longer you hold.

What is a realistic appreciation rate?

Long run home price growth in many markets has averaged roughly 3 to 5 percent a year, but it varies widely by location and period. Use a rate that fits your market and treat the result as an estimate.

Is appreciation the same as my return?

No. Appreciation only measures the change in market value. Your actual return also depends on leverage, rental income, expenses, taxes and transaction costs, which this calculator does not include.

Does this account for inflation?

No. The figures are nominal, meaning they are not adjusted for inflation. If you want real growth, subtract your expected inflation rate from the appreciation rate before entering it.

Can appreciation be negative?

Yes, property values can fall. You can enter a negative rate to model a decline, which will show a future value below the current value and a negative gain.

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