How property value is estimated from the price per m²
Homes are compared by their price per square metre because it puts a small studio and a large family apartment on the same scale. If similar homes in your area sell for a given price per m², multiplying that price by the size of your home gives a first, honest estimate of what it is worth today.
Comparing that estimate with what you paid shows your gain. Spreading the gain over the years you have owned the property gives the average yearly appreciation, which is the number you can compare with a savings account, inflation or the stock market.
The formulas
Value = Size (m²) × Price per m²Gain % = (Value − Purchase price) ÷ Purchase priceAverage yearly appreciation = (Value ÷ Purchase price)^(1 ÷ n) − 1Projected value = Value × (1 + g)ᵗn is the number of years since you bought, g is the yearly growth you expect from now on (3% = 0.03) and t is the number of years you look ahead.
Example: a 60 m² apartment
You bought a 60 m² apartment in 2019 for €90,000, which is €1,500 per m². In 2026, similar apartments nearby sell for about €2,400 per m², so yours is worth around €144,000. That is a gain of €54,000, or 60%.
Sixty percent sounds like a lot, but over seven years it works out to an average of about 6.9% a year. If prices grow a more modest 3% a year from here, the apartment would be worth about €193,524 in 2036. If you simply assumed the past average rate would continue, you would get about €281,814 instead, which shows how much a projection depends on the growth rate you pick. Treat projections as scenarios, not forecasts.
Where to find a realistic price per m²
- Recent sold prices of comparable homes. Same neighbourhood, similar size, age and condition. This is the closest thing to a market value. In England and Wales, for example, HM Land Registry publishes Price Paid Data for residential sales.
- Listings for similar homes. Easy to find, but asking prices are usually higher than final sale prices, so adjust down rather than taking them at face value.
- Official house price indices. The Eurostat House Price Index for EU countries, the UK House Price Index and the FHFA House Price Index in the US show how prices moved over time. They are averages for whole regions, so use them to check your assumed growth, not to value one specific home.
- A professional valuation. When the number really matters, for a sale, a mortgage or a divorce, a licensed valuer will inspect the property.
What this calculator does not include
- The specifics of your home. Floor, view, layout, parking, energy efficiency and the state of the building can move the price well above or below the local average.
- Renovations. Money spent on a new kitchen is part of what you invested, so a gain that ignores it looks better than it is.
- Transaction costs and taxes. Agency fees, notary and registration costs, transfer taxes and any tax on the gain when you sell all reduce what you keep.
- Inflation. All amounts are nominal. Part of any price rise only keeps up with general prices; the inflation calculator shows how much.
Track your property value year by year
A single estimate tells you where you stand today. To see the real evolution, Total Worth lets you store a price per m² for each year for every property you own, so its value is recalculated as the market moves. Your real estate sits next to your cash in several currencies and your investments, and the dashboard shows how your whole net worth changes over time. It is free, needs no account, and your data stays in your browser.
Frequently asked questions
How do I estimate my property’s value from the price per m²?
Multiply the size of the property in square metres by the typical price per square metre of similar homes in the same area. A 60 m² apartment in an area where comparable homes sell for 2,400 per m² is worth roughly 144,000. Adjust up or down for condition, floor, view and renovations.
Where can I find a realistic price per square metre?
The best source is recent sold prices of similar homes in the same neighbourhood. Asking prices in listings are useful but usually sit above final sale prices. Official house price indices, such as the Eurostat House Price Index, the UK House Price Index or the FHFA House Price Index in the US, show how prices moved over time but not the value of a specific home.
What is average yearly appreciation (CAGR)?
It is the constant yearly growth rate that turns your purchase price into today’s value: (value ÷ purchase price)^(1 ÷ years) − 1. A home bought for 90,000 and worth 144,000 seven years later gained 60% in total, which is about 6.9% a year. Real prices rarely move at a constant rate, so this is an average, not a history.
Does the calculator include inflation, taxes or buying and selling costs?
No. All amounts are nominal and before taxes, notary and agency fees, renovation costs and other transaction costs. To see how much of a gain is only inflation, compare the average yearly appreciation with the inflation rate for the same years.
How can I track my property’s value year by year?
Total Worth lets you record a price per m² for each year for every property, next to your cash and investments, and charts how your net worth evolves. It is free, needs no account, and your data stays in your browser.