Finance

Home Return on Investment Calculator (15 Years)

Calculate return on investment as a percentage. This home version uses a 15-year planning term as its starting point.

For this 15-year home investment, the Return percentage is the total gain or loss on the amount invested, expressed as a share of that amount, so a positive Return means the final value is higher than the amount invested, while a negative Return means it is lower.

Formula

Return equals final value minus invested amount, divided by invested amount, times 100.

How it works

A positive return means the final value is higher than the amount invested.

Worked example

Amount invested $10,000, final value $15,000, term 15 years. Using the page formula, return equals $15,000 minus $10,000, divided by $10,000, times 100, which is $5,000 divided by $10,000, times 100, which is 50.00%. That is the calculator's own result for these defaults, and it is the same on every page in this group because the term is not an input.

Spread over 15 years as an illustration only, not as an output of this page, the simple average is 50 divided by 15, which is 3.33% a year, and the steady rate that would compound $10,000 to $15,000 over 15 years is 2.74% a year. The steady rate is lower because compounding builds on earlier gains, while the simple average ignores that effect. Neither illustration is the page output, and neither includes fees, taxes, mortgage interest or inflation.

Who this term suits for a home household: a home household midway through a mortgage, for example owners who bought 15 years ago and now want to know whether the rise in value has beaten the cost of owning, repairs and interest paid so far.

FAQs

What is a good ROI?
There is no single good figure. Compare returns over the same period and with the same risk before deciding.

Is this home calculator exact?
No, it is an estimate for planning only, based on the numbers you enter.

Are these figures financial advice?
No, they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.

What does 50% over 15 years mean per year?
As a simple average it is 3.33% a year, and as a steady compounded rate it is 2.74% a year. Both are illustrations only, since real home values do not rise evenly.

Does a 15-year home return include mortgage interest?
No. This page counts only the amount invested and the final value, so mortgage interest, insurance and taxes must be checked separately.

Is a 15-year home gain safe to spend?
Only after selling costs and taxes are taken out. A paper gain on a home you still live in is not cash in hand.

Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.