House Price Increase Formula:
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The House Price Increase calculation measures the difference between a property's current value and its previous purchase price. This helps homeowners and investors understand their property's appreciation over time.
The calculator uses a simple formula:
Where:
Explanation: The calculation shows the absolute dollar amount increase in property value.
Details: Understanding price increases helps with financial planning, assessing investment returns, making selling decisions, and calculating capital gains taxes.
Tips: Enter both prices in the same currency without commas. The calculator accepts decimal values for precise calculations.
Q1: Should I include renovation costs in the old price?
A: No, the old price should reflect only the original purchase price. Renovation costs can be tracked separately.
Q2: How often should I calculate price increases?
A: For homeowners, annually is sufficient. Investors might track more frequently depending on market conditions.
Q3: Does this account for inflation?
A: No, this shows nominal increase. For real value changes, you'd need to adjust for inflation separately.
Q4: What if my result is negative?
A: A negative result indicates the property has decreased in value since purchase.
Q5: Can I use this for commercial properties?
A: Yes, the same calculation applies to any real estate investment.