How to read this result
In the default example, projected future value is $593,843.15. Results describe this input scenario; they are not a recommendation.
Change one assumption at a time to see how it affects the scenario. Compare periods and cost definitions consistently. Negative results show a modeled shortfall; an unavailable ratio needs a valid denominator.
Formula and methodology
Compound the entered annual appreciation rate over the chosen number of years. Subtract the initial value to find the projected dollar change and divide that change by the initial value for cumulative appreciation.
Enter percentages as whole numbers: 5 means 5%. When used as a factor, the calculation divides a percentage by 100. Percentage outputs multiply the final ratio by 100. Calculations retain precision internally; displayed amounts and rates are rounded to two decimals.
Variables and input definitions
- Current property value (USD)
- Current estimated property value. Minimum: 0.
- Annual appreciation rate (%/year)
- User assumption; not a forecast. Minimum: -100.
- Holding period (years)
- Projection horizon. Minimum: 0. Maximum: 100.
Worked example
This example uses the exact prefilled inputs above. Reset defaults to restore this scenario after making changes.
| Item | Default scenario |
|---|---|
| Current property value | $500,000.00 |
| Annual appreciation rate | 3.50% |
| Holding period | 5 |
| Item | Default scenario |
|---|---|
| Projected future value | $593,843.15 |
| Projected appreciation | $93,843.15 |
| Cumulative appreciation | 18.77% |
Assumptions and limitations
Pure scenario projection. Historical appreciation does not guarantee future appreciation.
Results describe this input scenario; they are not a recommendation.
The tool uses values you supply. It does not retrieve market prices, verify leases or inspect a property. Results exclude items outside the listed inputs. Review local requirements and the relevant contract when a payment, fee or allocation depends on them.
Common mistakes
Constant annual growth is a scenario, not a forecast. This value projection excludes sale costs, loan balances, rental cash flow and taxes.
Sources and method references
These references provide context for the method and terminology. They do not endorse this tool or validate your property assumptions.
- IRS — Instructions for Form 709 (2025) — real property valuationComparable-sales concept and adjusting for differences in date, size, condition and location.
Frequently asked questions
Can this projection model a price decline?
Yes. Enter a negative annual rate, down to −100%. The calculation uses that same annual rate across the entire horizon.
Does appreciation show my investment profit?
No. The projection only changes property value. Profit also depends on cash invested, financing, operating cash flow, taxes and transaction costs.