1. What is House Price Increase?

House Price Increase (HPI) is a percentage that measures how much a property's value has appreciated over time. It's calculated by comparing the current price to the original purchase price.

2. How Does the Calculator Work?

The calculator uses the HPI formula:

Where:

• \( CP \) — Current price of the property ($)
• \( OP \) — Original purchase price ($)

Explanation: The formula calculates the percentage increase by finding the difference between current and original price, then dividing by the original price and multiplying by 100 to get a percentage.

3. Importance of HPI Calculation

Details: Calculating house price increase helps homeowners understand their property's appreciation, assess investment performance, and make informed decisions about selling, refinancing, or home equity loans.

4. Using the Calculator

Tips: Enter the original purchase price and current market value in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good house price increase percentage?
A: This varies by market and time period, but typically 3-5% annual appreciation is considered healthy in most markets.

Q2: Does this calculation account for home improvements?
A: No, this is a simple percentage calculation. For a more accurate ROI analysis, you should factor in improvement costs.

Q3: How often should I calculate my home's price increase?
A: Many homeowners check annually or when considering major financial decisions related to their property.

Q4: Are there regional variations in house price increases?
A: Yes, real estate markets vary significantly by location, with some areas experiencing much higher appreciation rates than others.

Q5: Should I use this calculation for tax purposes?
A: For official tax calculations, consult a tax professional as different rules may apply for capital gains and other tax considerations.