How to calculate property value increase?

Property appreciation is calculated by subtracting the purchase price from the current market value. Divide this gain by the original purchase price and multiply by 100 to see your return on investment in percentage terms.

Formula

Appreciation % = ((Current Value − Purchase Price) ÷ Purchase Price) × 100

Worked Example

Bought for $300,000, now worth $360,000.

1. Gain: $360,000 − $300,000 = $60,000
2. Fraction: $60,000 ÷ $300,000 = 0.20
3. Percent: 0.20 × 100 = 20%

Result: The property value increased by 20%.