Renovate vs. Move Calculator Methodology

The calculator compares staying and renovating with selling the current home and moving to a different one. It estimates economic cost, monthly cash flow, upfront cash needs, loan balances, and ending home equity over the selected timeline.

The renovation path starts with the entered renovation budget, adds an overrun buffer, design and permit costs, temporary housing or disruption costs, and finishing costs. It also includes ongoing tax, insurance, HOA, and maintenance assumptions after the renovation.

Cash funding is treated as upfront cash. Home equity loans and personal loans use a standard amortized loan estimate. HELOCs can be modeled with an optional simplified interest-only period. Cash-out refinance is modeled as a simple renovation-financing estimate and does not fully replace the existing mortgage.

The move path estimates sale proceeds from the current home, then adds the new down payment, buying closing costs, moving costs, setup costs, new mortgage payments, and ongoing tax, insurance, HOA, and maintenance assumptions.

Selling costs are estimated as a percentage of the current home value. Buying closing costs are estimated as a percentage of the new home purchase price. These percentages are editable because real transaction costs can vary by market and deal structure.

Mortgage and renovation loan payments use a standard amortized loan formula. If you enter a current mortgage payment override, the calculator uses it for the current mortgage simulation.

payment = principal * (monthlyRate * (1 + monthlyRate)^payments) / ((1 + monthlyRate)^payments - 1)

The renovation path estimates ending value from current home value plus entered value added, then applies the appreciation assumption. Ending equity subtracts the current mortgage balance and any renovation loan balance. The move path estimates ending value from the new home price and subtracts the new mortgage balance.

Average monthly cash flow includes modeled mortgage or loan payments, property taxes, insurance, HOA dues, and maintenance. It is shown separately from total economic cost because a path can be cheaper long term but harder month to month.

Economic cost includes cash outflows, remaining loan balances, ending home value, and optional preference values. The calculator compares moving economic cost with renovation economic cost. If the difference is small, the result is shown as close.

This calculator does not include exact contractor bids, exact renovation delays, permit approval risk, exact appraisal outcomes, exact resale value increase, real estate agent advice, exact lender underwriting, tax consequences, insurance underwriting, or professional financial, mortgage, legal, tax, real estate, construction, or insurance advice.

These calculators are for educational purposes only and are not financial, tax, legal, insurance, investment, real estate, employment, medical, childcare, vehicle-buying, or professional advice.

This calculator uses user-entered assumptions and simplified total-cost modeling. Renovation costs, home values, financing terms, transaction costs, and resale outcomes can vary widely. It is educational only and is not financial, mortgage, tax, legal, real estate, construction, insurance, or professional advice.