Calculate a return scenario
Net value = your estimated added value minus your investment. ROI = net value divided by investment × 100. A negative result means the entered added value is below the project investment. Financing, tax, timing and future cash flows are not modeled.
First establish the project cost
Enter the total project investment, including the construction scope and other costs relevant to your decision. Use a written scope-based estimate and account for design, owner purchases and other excluded items before comparing that total with an assumed value contribution.
Keep value assumptions separate
For a simple resale-value scenario, net return equals the estimated value contribution minus total project cost. Divide that net return by total project cost and multiply by 100 to express a percentage. A value contribution equal to cost produces zero net return, not a profit.
Use the result as a sensitivity check
A positive result depends on the value estimate you supply. This page supplies no market appreciation, resale recovery, rent growth, or guaranteed return assumption. Comfort, usefulness, and personal priorities can be considered separately from the resale calculation.