math
appreciation rate
The percentage by which a property's value increases over a period of time. It is calculated by dividing the change in value by the original value. Exams may ask for annual appreciation, total appreciation over several years, or the future value of a property using simple or compounded rates.
- Exam tip
- Always divide the change by the original (starting) value, not the new value. Compound appreciation builds on each year's new value.
- Example
- A home bought for $250,000 is worth $275,000 a year later; the appreciation rate is $25,000 divided by $250,000, or 10%.
Related terms & state variants
Sources
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Last verified: 2026-10-23