Renovation ROI Calculator
Estimate whether your renovation will pay for itself — or if you're better off investing the cash.
Data reviewed 2026-09-03
Property & Renovation
$800,000
$50,000
$900,000
Growth & Comparison
Annual property value growth rate
Return if you invested the reno money elsewhere (e.g. shares, ETFs)
Key Stats
Immediate ROI
100.0%
On renovation spend
Net Uplift
$50,000
After renovation cost
Future Advantage
$70,128
Over 5 years vs not renovating
Alt. Investment Growth
$70,128
Cash invested at 7% p.a.
Renovation vs Invest the Cash
| Year | With Reno | Without Reno | Cash Invested | Reno Advantage |
|---|---|---|---|---|
| Year 1 | $963,000 | $856,000 | $53,500 | +$53,500 |
| Year 2 | $1,030,410 | $915,920 | $57,245 | +$57,245 |
| Year 3 | $1,102,539 | $980,034 | $61,252 | +$61,252 |
| Year 4 | $1,179,716 | $1,048,637 | $65,540 | +$65,540 |
| Year 5 | $1,262,297 | $1,122,041 | $70,128 | +$70,128 |
With Reno = post-reno value growing at 7% p.a. | Without Reno = current value growing at 7% p.a. | Cash Invested = reno money invested at 7% p.a.
Assumptions
- •Capital growth is applied equally to both the renovated and non-renovated property values at the same annual rate.
- •The alternative investment return is compounded annually on the full renovation cost.
- •This does not factor in rental yield improvements from renovation, tax implications (depreciation, CGT), or financing costs.
- •The “expected value after renovation” is your most critical input — get it appraised by a local agent before committing.
This is a simplified estimate only. Renovation outcomes depend on scope, quality, location, and market conditions — consult a property professional for advice specific to your circumstances.
How to use this calculator
When to use this
You're planning a renovation and want to know if it's worth it financially — or if you'd be better off investing the cash elsewhere.
Steps
- Enter your property's current market value.
- Enter the total renovation cost you're considering.
- Estimate the expected property value after renovation — ask a local agent for a realistic post-reno appraisal.
- Select how long you plan to hold the property after renovating.
- Review the year-by-year comparison to see when (or if) the renovation pays off versus investing the cash.
Tips
- Kitchens and bathrooms typically add the most value relative to their cost — focus on these for maximum ROI.
- Overcapitalisation risk — don't spend more than the suburb ceiling allows. Your renovated property can't exceed what the market will pay in that location.
- Consider opportunity cost — the renovation money could be earning returns elsewhere in shares, ETFs, or another property deposit.
- Get 3 quotes and add 20% contingency to your budget. Builder costs can vary 30–50% for the same scope and surprises are common in reno projects.