What this calculator does
Home appreciation compounds: each year's gain builds on the last. In Future value mode you pick a rate and see the value each year. In Find the rate mode you enter what you paid, what it's worth now and the years in between, and get the compound annual growth rate (CAGR).
How it's calculated
Average yearly rate (CAGR) = (value now ÷ purchase price)1 ÷ years − 1
Worked example
A $350,000 home growing 4% a year is worth 350,000 × 1.0410 = $518,085 after 10 years, a $168,085 gain. A home bought for $300,000 and worth $450,000 eight years later grew (450,000 ÷ 300,000)1/8 − 1 = 5.20% a year. The simple average, 50% ÷ 8 = 6.25%, overstates it because it ignores compounding.
Average home appreciation per year
The FHFA House Price Index tracks repeat sales of the same homes with mortgages backed by Fannie Mae or Freddie Mac. In its 2026 Q2 report, FHFA's US purchase-only index (seasonally adjusted, not adjusted for inflation) was up 2.13% over the past year, 33.41% over five years and 335.69% since the first quarter of 1991. By our calculation, that long-run gain works out to about 4.3% a year compounded, and the five-year gain to about 5.9% a year. Your area can differ a lot from the national figure, and past growth doesn't predict the future.
Value after 10 years
| Value today | 2% a year | 3% a year | 4% a year | 5% a year |
|---|---|---|---|---|
| $250,000 | $304,749 | $335,979 | $370,061 | $407,224 |
| $350,000 | $426,648 | $470,371 | $518,085 | $570,113 |
| $500,000 | $609,497 | $671,958 | $740,122 | $814,447 |
Limitations
- Real prices move unevenly and can fall; a constant rate is a planning assumption.
- Figures are in future dollars, not adjusted for inflation.
- Value isn't profit: selling costs, improvements and the mortgage all change what you keep.