Price Increase Formula:
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The Property Price Increase Percentage measures how much a property's value has grown over time, expressed as a percentage of its original price. This metric is essential for investors, homeowners, and real estate professionals to track appreciation.
The calculator uses the percentage increase formula:
Where:
Explanation: The formula calculates the difference between the new and old prices, then shows what percentage this difference is of the original price.
Details: Calculating price increase percentage helps in evaluating investment performance, comparing property appreciation across markets, and making informed buying/selling decisions.
Tips: Enter the original price and current price in dollars. Both values must be positive numbers. The calculator will show the percentage increase (or decrease if negative).
Q1: What's considered a good price increase percentage?
A: This varies by market, but typically 3-5% annual increase is considered healthy in stable markets. Hot markets may see higher percentages.
Q2: How does this differ from ROI?
A: ROI considers all costs (purchase, improvements, etc.) while price increase percentage only compares purchase vs current price.
Q3: Should I include renovation costs?
A: No, this calculator compares purchase price to current value. For ROI calculations including renovations, use a different tool.
Q4: How often should I calculate this?
A: For homeowners, annually is sufficient. Investors may track more frequently depending on market conditions.
Q5: What if my result is negative?
A: A negative result indicates price depreciation, meaning the property is worth less than what was originally paid.