Assets appreciate at compound rates: a home gaining 4% a year doubles in about 18 years. The same formula with a negative rate gives depreciation.
How to use the Appreciation Calculator
- Starting value
- Appreciation rate
- Rate applies
- Number of periods
- Every result field is editable: type into Final value and Appreciation rate plus every other field update to match.
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the starting value, the appreciation rate and how often it applies, and the number of periods.
Tips
- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.
Common mistakes to avoid
- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).
Inputs explained
| Field | What to enter |
|---|---|
| Starting value | Amount in your currency |
| Appreciation rate | In % |
| Rate applies | Choose one: Per year, Per month, Per quarter |
| Number of periods | A number |
What each result means
- Final value = [Starting value]×(1 + [Appreciation rate]÷100)^[Number of periods]
- Total appreciation = [Final value] – [Starting value]
- Total growth = ([Final value]÷[Starting value] – 1)×100
- Equivalent annual rate = ((1 + [Appreciation rate]÷100)^[Rate applies] – 1)×100
Example values
How the main result changes when Appreciation rate changes and everything else stays at the example values above:
| Appreciation rate (%) | Final value |
|---|---|
| 2 | 426,648.05 |
| 3 | 470,370.73 |
| 4 | 518,085.5 |
| 5 | 570,113.12 |
| 6 | 626,796.69 |
| 8 | 755,623.75 |
Formula
Future value = starting value × (1 + rate)^periodsAppreciation = future value − starting valueWorked example
Inputs — Starting value: $350,000; Appreciation rate: 4 %; Rate applies: Per year; Number of periods: 10.
Results — Final value = $518,085.50; Total appreciation = $168,085.50; Total growth = 48.02 %; Equivalent annual rate = 4 %.
Frequently asked questions
How much do homes appreciate per year?
Over the long run U.S. home prices have risen about 4–5% a year on average.
How do I calculate appreciation?
Multiply the value by (1 + rate) once for each period.
What is the difference between appreciation and depreciation?
Appreciation is a rise in value, depreciation a fall – use a negative rate.
What formula does the Appreciation Calculator use?
Future value = starting value × (1 + rate)^periods.