RemodelingIntermediate

What Is Cost Recovery (Renovation ROI)?

Cost recovery is the percentage of a renovation's cost that comes back as added home value — a 75% cost recovery on a $20,000 project means about $15,000 in added value.

Most useful for: Homeowner
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At a Glance
Cost Recovery
Cost Recovery %=Estimated Value Added÷Project Cost×100
72%
💡

A $25,000 kitchen remodel that adds $18,000 in value has a 72% cost recovery.

Formula

Cost Recovery % = Estimated Value Added ÷ Project Cost × 100

Example

A $25,000 kitchen remodel that adds $18,000 in value has a 72% cost recovery.

See Cost Recovery (Renovation ROI) calculated for a real scenario
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Why it matters

No renovation recovers 100% of its cost in most markets — cost recovery helps set realistic expectations for how much of a project's price tag comes back at resale.

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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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