What Is Cost Recovery?
Cost recovery is the percentage of a renovation's cost that comes back as added home value — a 75% cost recovery on a $20,000 project means about $15,000 in added value.
Formula
Cost Recovery % = Estimated Value Added ÷ Project Cost × 100
Example
A $25,000 kitchen remodel that adds $18,000 in value has a 72% cost recovery.
Why It Matters
No renovation recovers 100% of its cost in most markets — cost recovery helps set realistic expectations for how much of a project's price tag comes back at resale.