Every Remodel ROI calculator on Reaixo — whether for a kitchen, bathroom, basement, deck, or addition — runs on the same underlying model. This page explains exactly what that model does, so the percentage you see isn't a black box.
The Formula
What Goes Into the Calculation
- Project cost — either a single total, or an itemized breakdown (labor, materials, permits, etc.) summed together.
- Value added — your own estimate, or a default based on the project type's typical recovery rate.
- Starting condition — dated, functional-but-old, needs-major-repair, builder-grade, or already-updated, each with its own multiplier.
- Current home value — used to flag when a project cost is large relative to the property, which tends to limit resale recovery.
Why Starting Condition Matters
A kitchen remodel on a dated, original-cabinets kitchen tends to move buyer perception more than the same remodel on a kitchen that was already updated within the last several years — the second project has less "distance" to close. The model applies a condition multiplier for this reason: dated and needs-major-repair starting points get a higher multiplier, already-updated gets a lower one.
What This Methodology Does Not Capture
These are planning-level estimates, not contractor bids or appraisals. They don't account for how long you'll own the home before selling, non-financial value (comfort, functionality, enjoyment), or hyper-local buyer preferences that a comparable-sales-based valuation would need to separately account for.
Related terms: Cost Recovery, Over-Improving in the full glossary.