In real estate, the term appreciation refers to the increase in the value of a property over time. The simplest way to calculate home appreciation is to divide the change in the home’s value by the initial cost and multiply it by 100. Appreciation is the amount a home increases in value over time.

For a more detailed method to calculate a home’s likely appreciation rate, add one to the annual appreciation rate, raise this to a power equal to the number of years you’d like to estimate, then multiply that by the current value of the property.