Quick Answer — Does This Renovation Pay For Itself?
ROI % = Value Added ÷ Effective Cost × 100, where Effective Cost accounts for any DIY labor savings. An ROI of 100% means you recoup every dollar spent at resale; above 100% means the project adds more resale value than it cost; below 100% means you're paying for enjoyment or necessity, not pure investment return.
Quick reference (2026 national averages, contractor-installed): minor kitchen remodel — $28,458 cost, $32,141 value added, 113% ROI, the best-performing interior project nationally. Midrange bathroom remodel — $26,138 cost, $20,910 value added, 80% ROI. Upscale kitchen remodel — roughly 31% ROI. Upscale bathroom remodel — roughly 42% ROI. The pattern is consistent across categories: modest, functional updates recoup far more of their cost than luxury upgrades of the same room type.
This gap is the single most important thing this calculator makes visible — a $161,000 upscale kitchen and a $28,458 minor kitchen refresh are not different sizes of the same good decision, they're financially opposite decisions if resale value is your primary goal.