Property Appreciation Calculation Tool

The appreciation definition explains that appreciation is simply is an increase in value – that after a defined period, the value of the good or service will be higher. Appreciation rate is the percentage of the increased value compared to the original value. Appreciation works similarly to compound interest. After each period, the value increases depending on the provided rate.

More common is the opposition of appreciation – depreciation – which would be a decrease in value. Both appreciation and depreciation use the same formula, with either rates that are below zero (depreciation) or above zero (appreciation). Many assets easily come to mind which we expect will grow (appreciate) or decrease (depreciate) in value.

For example, once you buy stocks, a house, or any other investment, you expect that their value will appreciate. Once you buy a smartphone, clothes, or a car, you know that their value will probably depreciate. You can see an example of this occurring in the car depreciation calculator.

There is a formula that may help you find the future value of the product:

where:

• $\text{stVal}$ – Starting value equal to how much your product costs;
• $\text{apRate}$ – Appreciation rate, which is the growth rate value of the product;
• $\text{period}$ – The time over which the appreciation is calculated;
• $\text{finVal}$ – Final value expressing how much the product will cost at the end of the defined period; and
• This is all you need to know to find, for example, your future home value.