Renovation

Renovation Return Calculator

A renovation calculator for deciding whether the project creates enough value after cost blowouts and selling costs are considered.

Decision report included

Review the decision summary, key metrics, assumptions, and action items, then create a printable report for a lender, broker, household, or client discussion.

Use the report to document the scenario, explain the tradeoff, and agree on the next action.

Inputs

Enter your scenario.

Current property value$680,000

Current market value before renovation.

Renovation budget$70,000

Expected build, materials, design, and contractor cost.

Contingency12.00%

Budget buffer for surprises and scope creep.

Holding costs$7,500

Interest, rent, storage, permits, or temporary living costs during works.

After-renovation value$820,000

Expected value once the renovation is complete.

Selling costs2.50%

Agent, marketing, legal, and transaction costs as a share of value.

Target return20.00%

Minimum return you want on renovation cash at risk.

Decision Summary

Renovation verdict

Strong fit

The project creates an estimated net gain of $33,600 after contingency and selling costs, producing an ROI of 31.6%.

Decision index

Healthy

Key metric comparison

Net gain$33,600

Renovation ROI31.6%

Contingency amount$8,400

Break-even value$786,400

Margin of safety4.1%

Net gain

Healthy

$33,600

Value uplift less renovation, contingency, holding, and selling costs.

Renovation ROI

Healthy

31.6%

Net gain compared with total project cash at risk.

Contingency amount

Healthy

$8,400

Budget buffer added to the renovation cost.

Break-even value

Healthy

$786,400

After-renovation value needed to avoid a loss.

Margin of safety

Watch

4.1%

Net gain as a share of after-renovation value.

Total project cost

Healthy

$106,400

Renovation, contingency, holding costs, and selling costs.

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Assumptions

Review the assumptions behind the result.

Contingency is added to renovation cost to reflect budget risk.
Selling costs are calculated on the expected after-renovation value.
ROI compares net gain with the renovation cash at risk.

How To Use The Result

Turn the output into a practical next step.

Use a conservative after-renovation value until comparable sales support it.
Increase contingency for older properties or uncertain scope.
Avoid projects where selling costs erase most of the uplift.

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