CalculateRealEstateROI

Appreciation

Appreciation Leverage

Equity multiplication created by financing appreciating assets at high LTV.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

5% appreciation on a 5x-leveraged property = 25% equity growth.

Examples

  • $500k home @ 20% down × 5% appreciation = $25k on $100k = 25%.

Common mistakes

  • Forgetting leverage compounds losses identically on the downside.

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