1. What is the Percentage Increase Formula?

The percentage increase formula calculates how much a value has grown relative to its original amount. It's commonly used in real estate to track property value changes over time.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Price} \) — Current or recent price of the property
• \( \text{Old Price} \) — Original purchase price or previous value

Explanation: The formula shows what percentage the new price has increased compared to the old price.

3. Importance of Price Increase Calculation

Details: Calculating house price increases helps homeowners understand their property's appreciation, evaluate investment returns, and make informed decisions about selling or refinancing.

4. Using the Calculator

Tips: Enter both old and new prices in dollars. The calculator automatically computes the percentage increase between the two values.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good annual price increase?
A: Typically 3-5% annually is considered healthy growth, though this varies by market conditions and location.

Q2: How does this differ from compound annual growth rate (CAGR)?
A: This shows total increase over the period, while CAGR calculates the average annual growth rate accounting for compounding.

Q3: Should I include renovations in the calculation?
A: For pure market appreciation, use original purchase price. For total return on investment, include renovation costs in the old price.

Q4: How often should I calculate my home's price increase?
A: Annually is common, though more frequent during hot markets or when considering selling.

Q5: Where can I find accurate price comparisons?
A: Consult recent comparable sales (comps) in your area from real estate websites or a professional appraisal.