Finance

Home Return on Investment Calculator (30 Years)

Calculate return on investment as a percentage. This home version uses a 30-year planning term as its starting point.

For this 30-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 30 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 30 years as an illustration only, not as an output of this page, the simple average is 50 divided by 30, which is 1.67% a year, and the steady rate that would compound $10,000 to $15,000 over 30 years is 1.36% 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 across a typical mortgage lifetime, for example a 30-year mortgage, where a 50% total return over the whole term must be compared with the total interest paid on the loan, not just the sale price.

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.

Is a 30-year home return the same as a mortgage plan?
No. This page measures only invested amount against final value. A 30-year mortgage adds interest that can be larger than the gain itself.

What happens if household income falls for several years in a 30-year plan?
The home return does not change on this page, but the ability to keep paying the mortgage does, so income risk matters more than the percentage.

Should I buy a home only for a 50% return over 30 years?
No. Over 30 years the simple average is just 1.67% a year, so buy mainly for a place to live, and treat any gain as a bonus.

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