How Remodel ROI Is Calculated
ROI is calculated as (resale value added minus remodel cost) divided by remodel cost, expressed as a percentage. A $20,000 kitchen update that adds $15,000 to resale value has a 75% ROI. Note that ROI varies significantly by market, neighborhood, and home price range.
Projects With the Highest ROI
- Minor kitchen update — cabinet hardware, new faucet, countertops: 75-90% ROI
- Bathroom cosmetic update — vanity, grout, fixtures: 70-80% ROI
- Manufactured stone veneer exterior — 90%+ in some markets
- Garage door replacement — 93%+ nationally per Cost vs. Value report
- Entry door replacement — 70-80% ROI
Projects With Lower ROI
- Upscale kitchen remodel — often 50-60% ROI
- Major bathroom addition — 50-60% ROI in most markets
- Sunroom addition — highly location-dependent
- Home office conversion — depends heavily on buyer demand in your area
- Swimming pool — negative ROI in many climates
Frequently Asked Questions
What home remodels have the best return on investment?
Minor kitchen updates, bathroom cosmetic refreshes, and curb appeal projects (entry doors, garage doors, landscaping) consistently rank highest in national Cost vs. Value reports. Major high-end remodels typically return less as a percentage of cost.
Should I remodel before selling?
It depends on market conditions, your home price range, and the current condition of the home. In a sellers market, you may not need to remodel at all. In a buyers market, cosmetic updates reduce negotiation leverage buyers have over dated or damaged items.