Homeownership is often the largest financial commitment for many Americans, so protecting and enhancing that investment is vitally important. Timely home upgrades can boost property value, improve curb appeal, and lower energy costs, all while creating a more comfortable living space. If you're looking for smart, budget-friendly upgrades with strong returns on investment (ROI), Pro-Tech Air Conditioning & Plumbing Service is here to provide expert guidance and support.

Calculating Home Upgrade ROI

To calculate return on investment (ROI) for a home upgrade, use the formula that factors in the cost of the upgrade and the increase in property value it provides.

ROI = (Net profit/cost of investment) x 100

The net profit is the monetary gain from the investment minus its cost.

The cost of investment includes the total financial outlay required to complete the project, encompassing materials, labor, and other fees.

To calculate the ROI on a bathroom remodel, for example, you could plug in the following values:

Cost of investment in remodeling, labor, permitting, and related expenses: $25,000
Net profit, or return on investment (at appraisal): $18,000

That equates to a bathroom remodel return on investment percentage of 72%; this is typical for substantial projects.

What Are the Highest-ROI Home Improvements?

Not every family has thousands and thousands of dollars lying around to spend on a comprehensive home remodel. Fortunately, there are several home upgrades that are affordable and can make a big impact in terms of both ROI and your comfort.

1. Curb Appeal Upgrades

Some of the home upgrades with the highest ROI are outside! This makes sense, as there’s nothing like a great first impression when someone drives by. Here are a few ideas for affordable home improvements:

Add or upgrade existing light fixtures. This is also a good time to implement security lighting. Choose energy-efficient options, such as LED lighting, which has anROI of more than 100% within a year of installation.
A new coat of paint can reenergize any home’s look. A neutral color can help attract a wider range of potential buyers.
Trim bushes, add mulch and flowers, and add rocks and other natural features to make your outdoor space as inviting as the interior.

2. Replace Your Garage Door

For even more curb appeal, choose one of the most cost-effective home improvements: garage door replacement. In addition to offering an immediate curb appeal boost, an insulated garage door can offer an average ROI of around 200%.

3. Replace Your Front Door

Bring curb appeal to the next level with a front door replacement. This visual upgrade adds security, too. A new steel front door offers great return on investment at around 100%. That makes it a very safe investment!

4. Upgrade Your Kitchen Appliance

As a standalone project or as part of a minor kitchen remodel, upgrading to modern, energy-efficient appliances offers an ROIbetween 50% and 95%. Kitchen appliances improve the room cosmetically and may lower your home’s energy consumption; just ensure your home’s electrical system is in good working order.

5. Adding Insulation

Similar to maintaining your HVAC system, adding insulation can enhance your home’s energy efficiency, offering a relatively short payback period: insulation can provide anannual ROI of 18.5%. Insulation may also prolong the functional lifespan of your heating and cooling systems by reducing the frequency and duration of running cycles.

Potential Plumbing Upgrades

While not as flashy as a new washing machine or a fresh coat of paint, there are some affordable plumbing upgrades with nifty ROI.

Low-flow toilets are inexpensive upgrades that lower water consumption and offer average ROIs up to 100%.
Smart plumbing technologies, such as leak detectors or sump pump alarms, offer peace of mind and protect against costly water damage.

Explore More High-ROI Home Upgrades With Pro-Tech Air Conditioning & Plumbing Service

We are a local Orlando business specializing in home upgrades, including HVAC and plumbing services. We provide quality work at honest prices to help our neighbors improve their properties. Schedule your service appointment with our friendly technicians today!

Five Affordable Home Upgrades With the Highest ROI