1. What is the Percentage Increase Formula?

The percentage increase formula calculates how much a value has grown relative to its original amount, expressed as a percentage. It's commonly used to measure home price appreciation over time.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Price — Current or final home price
• Old Price — Original or purchase price

Explanation: The formula calculates the difference between the new and old price, divides by the original price to get the relative change, then converts to a percentage.

3. Importance of Price Increase Calculation

Details: Calculating home 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 prices in the same currency (typically dollars). The old price should be the original purchase price or value at comparison point, while the new price is the current or final value.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good price increase percentage?
A: This depends on market conditions and timeframe. Historically, 3-5% annual increase is considered healthy in stable markets.

Q2: How does this differ from compound annual growth rate (CAGR)?
A: This shows total percentage increase over the entire period, while CAGR shows the average annual growth rate that would achieve the same result.

Q3: Should I include home improvements in the calculation?
A: This calculator measures market appreciation. For return on investment calculations including renovations, you'd need a more comprehensive approach.

Q4: How often should I calculate my home's price increase?
A: For most homeowners, annual calculations are sufficient unless considering selling or refinancing.

Q5: Can this be used for other types of price increases?
A: Yes, the same formula works for any value increase calculation - salaries, investments, or other assets.