1. What is Percentage Increase?

Percentage increase measures how much a value has grown relative to its original amount. In real estate, it helps quantify how much a property's value has appreciated over time.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{Number1} \) — Original price or value
• \( \text{Number2} \) — New price or value

Explanation: The formula calculates the difference between the two values, divides by the original value to get the relative change, then converts to a percentage by multiplying by 100.

3. Importance of Calculating Price Increases

Details: Tracking percentage increases helps homeowners understand their property's appreciation, compare investment performance, and make informed decisions about selling or refinancing.

4. Using the Calculator

Tips: Enter the original price and new price in dollars. Both values must be positive numbers. The calculator will show the percentage increase between the two values.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good percentage increase in house prices?
A: This varies by market and timeframe, but historically, U.S. home prices appreciate about 3-5% annually on average.

Q2: How does this differ from absolute increase?
A: Absolute increase shows dollar amount change ($50,000), while percentage increase shows relative change (25%), which is better for comparisons.

Q3: Should I include renovations in the calculation?
A: For pure market appreciation, use purchase and sale prices. For ROI on improvements, you might compare pre- and post-renovation estimates.

Q4: How often should I calculate my home's appreciation?
A: Annually is common, but more frequent during hot markets or when considering selling. Professional appraisals every few years provide most accurate data.

Q5: Does this account for inflation?
A: No, this shows nominal increase. For real increase, you'd need to adjust the older price for inflation before calculating.