Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Home Appreciation Calculator: What Will Your Home Be Worth in 2026 and Beyond? Updated Jun 23, 2025 10-min read Written by Megan Hanna Written by Megan Hanna Expertise: Personal loans, home loans, credit cards, banking, business loans Dr. Megan Hanna is a finance writer with more than 20 years of experience in finance, accounting, and banking. She spent 13 years in commercial banking in roles of increasing responsibility related to lending. She also teaches college classes about finance and accounting. Learn more about Megan Hanna Home appreciation is the increase in your home’s value over time. It’s influenced by market trends, local demand, property improvements, and broader economic conditions. If you own a home or plan to buy one, it helps to know how much your home might be worth in the future. Below, we’ll walk through what the home appreciation calculator estimates, how to use it, and why these numbers matter. We’ll also share a few example scenarios to show how appreciation can add up over time—and what it could mean for your equity and financial planning. Table of Contents What our calculator estimates Using our calculator Current home value estimate ($) Home appreciation rate (%) Years from now Optional future equity calculation Home appreciation scenarios Why appreciation matters FAQ What is home appreciation? How do homes appreciate in value? How much do homes appreciate per year? What is the average annual appreciation for homes? Do manufactured homes appreciate? Do tiny homes appreciate in value? What the home appreciation calculator estimates The home appreciation calculator is a simple way to estimate how much your home might grow in value over time. It can help you forecast future equity and loan-to-value ratios (LTV) based on your inputs. The tool takes your home’s current value, expected rate of appreciation, and number of years into the future. If you enter optional loan details, it can also estimate future equity and LTV. Here’s what the calculator can show: Future value of your home: The projected market value of your home after a specified number of years. Estimated amount of appreciation: The total increase in your home’s value over the time period you selected. Current equity in your home: The difference between your home’s current value and what you still owe on your mortgage. Estimated future equity: Your projected equity after appreciation and estimated loan payments are factored in. Current LTV: A percentage comparing your mortgage balance to your home’s current value. Estimated future LTV ratio: A projected LTV reflecting your estimated mortgage balance and the appreciated home value. Each estimate gives insight into how your investment may grow—and what that means for your financial future. How to use the home appreciation calculator We designed the calculator to be easy to use, but it helps to understand each input before you start. Some fields are required, while others are optional but can give you a more complete picture of your future equity. Below, we’ll walk through each section so you know what to enter and what each field means. Current home value estimate ($) Figuring out what your home is currently worth is the starting point for any home appreciation estimate. The estimate you use should be your best guess at what your home is worth right now. If you’ve had a recent appraisal, you can use that. If not, online tools like Zillow or Redfin can provide a quick estimate. Just remember these are ballpark figures, not formal valuations. Even if you use an online estimate, it’s smart to compare it to recent sale prices for similar homes in your area. You can check real estate listings on Zillow, Realtor.com, or Redfin. You could also contact a real estate agent and ask for an estimate. Home appreciation rate (%) The home appreciation rate is the annual percentage your home is expected to increase in value. This rate is key to projecting future home value. According to recent data released by the Federal Housing Finance Agency (FHFA), the average increase in house prices in the U.S. was 4% between the first quarters of 2024 to 2025. Not only can this rate vary over time, but it also differs by region. Paying attention to the home appreciation rate in your local market can help you build a more accurate estimate. The calculator offers several suggestions on how to estimate this number: Zillow’s Home ValuesTool: Shows current and historical trends in home prices by region or city. Redfin Data Center: Offers up-to-date housing market stats, including year-over-year price changes. Your local FHFA House Price Index: Tracks price trends based on government data for specific metro areas. You can use one of these sources or take an average across multiple to form a balanced estimate. The appreciation rate is not the same as the amount of appreciation. The rate is an annual percentage increase, while the amount is the actual dollar gain over time. Years from now This field tells the calculator how far into the future you’d like to project your home’s value. It could be just a few years ahead or several decades out. The number of years you enter affects how much appreciation is calculated. More years usually means a greater increase in value, assuming a positive appreciation rate. This input also influences other results. For example, the future equity and LTV estimates depend on how long you hold the home and how much of the loan you’ll pay down in that time. Optional future equity calculation If you want the calculator to estimate your future equity and LTV, you’ll need to enter a few extra details about your mortgage. These fields help project how much your loan balance will be repaid over time. Here’s what you’ll need to enter: Current mortgage balance ($): The total amount you still owe on your home loan today. Current interest rate (annual, %): The annual rate on your current mortgage. Remaining loan term (years): The number of years left on your current loan. Extra mortgage payments (yes/no): Whether you plan to make additional payments toward the principal balance of your mortgage. These details allow the calculator to estimate how much your balance will decrease and how that affects your equity over time. LTV is the percentage of your home’s value financed through your mortgage. As your home value goes up and your balance goes down, your LTV improves—something lenders pay close attention to. Home appreciation scenarios Seeing how appreciation plays out over time can help you understand your home’s long-term potential. Below are sample scenarios based on different appreciation rates and time frames. These examples assume no major renovations or market disruptions. Let’s say your home is currently worth $350,000. Here’s what it might be worth in the future at three different appreciation rates: This chart shows how even a small difference in appreciation rate can lead to a significant difference in future value—especially over longer periods. The rate of appreciation isn’t fixed. In some years, it may be higher. In other years, it may be lower or flat, depending on market conditions. Looking at multiple scenarios gives you a more realistic range of possibilities. These projections don’t include any changes to your mortgage or added equity from extra payments, but they illustrate how growth can compound. If you’re planning to stay in your home long-term or use it as part of your retirement strategy, understanding how appreciation can build over time is essential. Reasons to pay attention to your home’s appreciation Tracking your home’s appreciation isn’t just about watching numbers rise. More importantly, it’s about understanding how your biggest asset fits into your broader financial strategy. As your home gains value, your equity grows. That equity can open the door to financing options beyond traditional home equity loans. Some homeowners explore alternatives called home equity agreements, where they share a portion of future appreciation with investors in exchange for upfront cash. These agreements don’t involve monthly payments, but they can carry trade-offs that are important to understand. (Check out our resource on the best HEA companies to find out more.) Need cash from your home’s increased value?Hometap offers a unique way to access your home equity without taking out a loan or making monthly payments. If you qualify, Hometap invests in a share of your home’s future value, giving you cash today in exchange for a portion of your home’s appreciation later. Appreciation also affects your LTV. A lower LTV can help you: Refinance more easily Qualify for better interest rates Remove private mortgage insurance sooner Beyond borrowing, appreciation plays a key role in long-term planning. Whether you’re thinking about downsizing, using your home to help fund retirement, or leaving a financial legacy, projected future value can inform your next steps. While housing markets can be unpredictable in the short term, appreciation tends to trend upward over time. Paying attention to how your home’s value changes gives you more control over how and when to use the wealth you’ve built. FAQ What is home appreciation? Home appreciation is the increase in your home’s market value over time. It reflects such factors as local housing demand, economic conditions, interest rates, and improvements you’ve made to the property. How do homes appreciate in value? Homes usually appreciate because of supply and demand, inflation, and local development. Renovations, low inventory, and neighborhood upgrades can also increase home values. How much do homes appreciate per year? Home appreciation varies based on local market conditions, demand, inflation, and interest rates. While recent FHFA data shows annual gains have commonly ranged from around 4% to less than 7% over the last 10 years, the actual rate in any given year could be higher or lower. Expect some fluctuation year to year, even in the same location. What is the average annual appreciation for homes? While it varies by region and year, the average annual home price appreciation rate (based on the previous four quarters) in the U.S. typically ranged from at or above 4% to less than 7% from the first quarter of (Q1) 2015 to Q1 2025, according to data reported by the FHFA. In hot markets or periods of high inflation, it can spike much higher. For instance, FHFA data shows the national average appreciation rate reached 13% in Q1 2021 and 18.3% in Q1 2022—well above long-term norms. Do manufactured homes appreciate? Yes, manufactured homes can appreciate—especially when they’re legally affixed to land, meaning they’re permanently attached to a foundation and treated like a traditional house (real property) for legal and lending purposes. Manufactured homes that are not affixed to land are considered personal property, like a vehicle, and usually don’t gain value in the same way. Do tiny homes appreciate in value? Tiny homes don’t always appreciate in value like traditional homes. Their value depends on whether the land is owned and legally connected to the home, how it’s built, and how local markets view small-footprint living.