1. What is Price Increase Percentage?

The Price Increase Percentage measures how much a property's value has grown over time, expressed as a percentage of its original price. It's a key metric in real estate to evaluate investment performance and market trends.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Price — Current or selling price of the property
• Old Price — Original purchase price or previous valuation

Explanation: The formula calculates the difference between new and old price, then shows what percentage this difference is of the original price.

3. Importance in Real Estate

Details: Tracking price increases helps investors assess property performance, compare market appreciation rates, and make informed buying/selling decisions. It's also used for tax assessments and refinancing evaluations.

4. Using the Calculator

Tips: Enter both prices in the same currency (typically USD). For accurate comparisons, use prices from the same type of valuation (market price, appraisal, or sale price).

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good price increase in real estate?
A: This varies by market, but typically 3-5% annual increase is healthy in stable markets. Hot markets may see higher short-term gains.

Q2: How does this differ from ROI calculations?
A: Price increase percentage doesn't account for expenses, taxes, or rental income - it's purely about property value change.

Q3: Should I use purchase price or adjusted cost basis?
A: For investment analysis, use purchase price. For tax purposes, use adjusted cost basis including improvements.

Q4: How often should I calculate price increases?
A: For owned properties, annual calculations are common. For market analysis, quarterly or monthly may be appropriate.

Q5: What if my property value decreased?
A: The calculator will show a negative percentage, indicating depreciation rather than appreciation.