Renovation Scope ROI Calculator

Choose the right renovation scope — light refresh vs full gut vs trophy renovation.

Pre-renovation rent

Scope cost

Rent lift / mo

Downtime days

Annual rent growth %

Payback months

69.6

5-year ROI %

-0.09%

Net investment incl downtime

$19,140

How the math works

Net investment = scope cost + downtime. Payback = net / rent lift.

$18k + $1,140 = $19,140 net. $275/mo lift → 69.6 mo payback. 5-yr ROI ~82%.

How to Use

Enter pre-renovation rent.
Enter scope cost (light/medium/full).
Enter expected rent lift per scope.
Enter vacancy cost during renovation.
Read payback by scope.

Frequently Asked Questions

Scope options?

Light refresh ($3-8k/unit): paint, carpet/flooring, basic fixtures, maybe appliance updates. Rent lift: $50-150/mo. 3-6 year payback. Medium ($10-25k/unit): kitchen cabinets, counters, appliances, bathroom vanity + tub tile, full flooring, lighting. Rent lift: $150-400/mo. 4-8 year payback. Full gut ($30-80k/unit): everything + new layout, HVAC, electrical, plumbing. Rent lift: $400-900/mo. 5-10 year payback.

Scope selection?

Class B to Class A upgrade: medium-to-full scope justified. Class C to Class B: light-to-medium. Post-acquisition value-add: test 3-5 units initially, measure rent lift, scale. Class A maintaining: only when market rent demands (finishes dated). Competitive repositioning: match comp amenities + finishes. Over-improvement: waste capex if market doesn't support premium.

Rent lift reality?

Pro forma lift: 20-40% higher than realized in practice. Reasons: (1) Market tests actual vs projected, (2) Comp set adjusts, (3) Amenity gaps unaddressed, (4) Neighborhood ceiling on rent. Conservative underwriting: 60-75% of target rent lift. Stretch: 80-90%. Unit renovation isolated from amenity + curb appeal + building systems = limited impact. Integrated value-add stacks components.

Downtime cost?

Light renovation: 5-10 days downtime. Medium: 10-21 days. Full gut: 30-60 days. Vacancy cost: monthly rent ÷ 30 × days down. Medium renovation on $2,200 rent unit: 14 days × $73 = $1,022 vacancy cost. Adds 8-15% to renovation budget. Schedule sequentially (not all units at once) to distribute vacancy and manage capex cash flow.