Home Growth Calculator

Formula

The formula to calculate the future home value is:

\[ FV = IV \times (1 + r)^n \]

Where:

$FV$ is the future home value (\$)
$IV$ is the initial home value (\$)
$r$ is the annual growth rate (expressed as a decimal)
$n$ is the number of years

What is Home Growth?

Home growth, or home appreciation, is the increase in the value of a property over time due to various factors such as market conditions, inflation, and improvements to the property. It is an important aspect of real estate investment, as it can significantly affect the return on investment when selling or renting out the property.

Example Calculation

Let's assume the following values:

Initial Home Value (IV) = $300,000
Annual Growth Rate (r) = 0.05 (5%)
Number of Years (n) = 10

Using the formula:

\[ FV = 300,000 \times (1 + 0.05)^{10} = 300,000 \times 1.629 = 488,700 \]

The Future Home Value (FV) is \$488,700.