How to use this calculator
- Enter or choose i want to.
- Enter or choose starting value (or purchase price).
- Enter or choose years.
- The value at the end of the period updates as you type. Use Copy result or Share to keep it.
Method
Future value = Start × (1 + r)^years; r = (End ÷ Start)^(1 ÷ years) − 1
- r
- compound annual appreciation rate
- Start, End
- property values at the beginning and end of the period
Worked example
- Growth factor = 1.04^10 = 1.480244.
- Future value = 300,000 × 1.480244 = 444,073.29.
- Appreciation = 444,073.29 − 300,000 = 144,073.29 (48.02%).
At 4% a year, a 300,000 home would be worth about 444,073 after 10 years.
What the result means
Small differences in the rate add up over long periods. Compare the growth rate with inflation to see whether the property gained in real terms.
Assumptions and limits
- Growth is a constant compound rate; real prices move unevenly and can fall.
- Improvements, costs of ownership and selling costs are not included.
- A past growth rate does not predict future growth.
Questions
Why not just divide the total gain by the years?
That gives a simple average that overstates the yearly rate. Doubling over 10 years is 10% a year simple but only 7.18% a year compound.
Please note: Returns are illustrations at a constant rate, not predictions or guarantees. Investments can lose value. This is not investment advice.