This article explains what each section of the Appreciation Calculator report shows, including projected home value, appreciation, and return on investment. Understanding these fields will help you when reviewing the report with your client so you can explain how appreciation impacts long-term equity.
Appreciation Timeline
Use the purple toggle bar to set the number of years for appreciation. You can choose between 1 to 15 years.
Appreciation Table
Estimated Home Value is calculated by taking the starting value of the home and adding the total appreciation gained over the review period.
Appreciation: is displayed as the dollar amount change in the home's value over the review period, based on the chosen appreciation rate(s). The average change per year is shown in smaller print.
Return on Investment is calculated by dividing the total appreciation after closing costs by the down payment. The average return per year is shown in smaller print.
In this example using the forecasted appreciation rate the calculation would be:
($447,133 − $40,000) ÷ $160,000 × 100 = 254%
Appreciation Comparison Chart
This chart compares future home values over time for up to two selected appreciation rates. Use the checkboxes in the legend to hide or display the corresponding appreciation line graphs.
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