Compare a home addition's net project cost with value added at completion and recurring annual benefits such as avoided rent, added income, or usable-space value. The calculator reports the remaining cost to recover, payback period, and return over your expected ownership horizon.
Payback occurs when accumulated net annual benefits cover the positive recovery gap.
Immediate value reduces the portion of cost that must be recovered through annual use or income. A result of “Immediate” means the entered value added equals or exceeds cost; it does not mean the estimate is guaranteed at sale.
Value added is location- and market-specific. Obtain a local appraisal or comparable-sales analysis and avoid counting rental income and personal use value for the same space at the same time.
With a $180,000 cost and $120,000 immediate value, the recovery gap is $60,000. A $15,000 first-year benefit less $2,500 annual cost produces $12,500 net in year one; with 2% benefit growth, payback occurs during year 5.
It isolates the portion of cost not represented by the modeled increase in property value.
Yes, but use net income after vacancy, management, and operating expenses.
The model reports immediate recovery, while reminding you that the value estimate is not guaranteed cash.
No. Include financing costs in project cost or use a separate cash-flow analysis.
It does not change the crossing year, but it determines whether payback is reached and the period used for ROI.
| Value component | Timing |
|---|---|
| Project cost | Upfront |
| Immediate value added | At completion |
| Annual space benefit | Each year |
| Added ownership cost | Each year |