Quick guide
How to use this calculator
- Enter property amounts from one consistent currency and period.
- Use the labels to match the calculator's stated income, cost, area, or capacity convention.
- Read the assumptions beside the result before using it in an investment comparison.
Calculation method
Calculation method
Annual operating improvement = annual rent increase + annual expense savings. First-year benefit ratio = (annual operating improvement + value increase) ÷ renovation cost × 100%.
Entered fixed decimals use exact rational arithmetic. Money rounds only for display; a supported nonzero amount is never replaced by a misleading zero.
Worked example
Worked example
A 20,000 renovation adding 2,400 annual rent, saving 600 annual expenses, and adding 10,000 in value has a 65% first-year benefit ratio and 15% recurring operating return.
Annual operating improvement = annual rent increase + annual expense savings. First-year benefit ratio = (annual operating improvement + value increase) ÷ renovation cost × 100%.
Supported inputs
Precision and limits
Visible input limits
Amounts accept up to 30 digits and 12 decimal places and are capped at 1e12 per input. Rates are capped at 1000%; signed value-change rates cannot be below −100%.
International scope
No currency, tax regime, tenancy law, lender threshold, local market database, appraisal standard, or jurisdiction-specific fee is assumed.
Decision boundary
The result is an arithmetic scenario based on visitor-entered figures, not an appraisal, forecast, lending decision, legal determination, or investment recommendation.
Calculator-specific assumptions
Value improvement is an entered estimate, not a realized cash receipt. The calculation excludes financing, tax, downtime, overruns, and sale costs.