Enter the initial home value, the annual growth rate, and the number of years into the calculator to determine the future home value. This calculator helps in estimating the appreciation of a home’s value over time.

Home Growth Formula

The following formula is used to calculate the future home value. 

FV = IV * (1 + r)^n

Variables:

  • FV is the future home value
  • IV is the initial home value
  • r is the annual growth rate (expressed as a decimal)
  • n is the number of years

To calculate the future home value, multiply the initial home value by the growth factor, which is one plus the annual growth rate raised to the power of the number of years.

What is Home Growth?

Home growth, or home appreciation, is the increase in the value of a property over time due to various factors such as market conditions, inflation, and improvements to the property. It is an important aspect of real estate investment, as it can significantly affect the return on investment when selling or renting out the property.

How to Calculate Future Home Value?

The following steps outline how to calculate the future home value.

  1. First, determine the initial home value (IV).
  2. Next, determine the annual growth rate (r) as a percentage and convert it to a decimal by dividing by 100.
  3. Next, determine the number of years (n) you want to calculate the growth for.
  4. Next, gather the formula from above = FV = IV * (1 + r)^n.
  5. Finally, calculate the future home value (FV).
  6. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

Initial home value (IV) = $300,000

Annual growth rate (r) = 3%

Number of years (n) = 10