Understand home appreciation assumptions, equity growth, and how loan paydown affects your net worth over decades.
Forecast your equityAppreciation is powerful but not guaranteed
Historically, U.S. home prices have risen roughly 3–5% per year on average, but individual markets vary widely. A home bought for $400,000 at 3% annual appreciation could be worth about $970,000 in 30 years — before accounting for maintenance, upgrades, or downturns.
Past performance does not guarantee future results. Local job growth, supply constraints, and interest rates all influence long-term values. Use conservative, moderate, and optimistic scenarios rather than a single guess.
Equity = home value minus what you owe
Your equity grows two ways: the home appreciates and you pay down the loan. After 30 years of payments on a typical amortizing mortgage, the loan balance reaches zero — so you own the full appreciated value.
Our Wealth Scenarios tool models estimated home value and equity at 5, 10, 20, and 30 years under different appreciation rates, net of remaining loan balance. That shows your home as a long-term asset, not just a monthly expense.
How to use projections responsibly
Treat 30-year forecasts as planning tools, not promises. Maintenance, property taxes, insurance, and major repairs reduce net wealth compared to headline home value. Selling also incurs agent fees and transaction costs.
Still, long-term homeowners often build substantial equity. Enter your home price, down payment, rate, and term in our calculator, then review wealth scenarios to see how different appreciation paths affect your net position over time.
Ready to run the numbers for your situation?
Forecast your equity