Reconstruction Profit Calculator

Apartment Redevelopment ROI

Profitability Grade

Excellent

ROI

50.0%

Annual Return

4.14%

Total Investment

80,000× 10,000 KRW

Net Profit

+40,000× 10,000 KRW

For reference only. Actual returns may vary with market conditions.

Redevelopment profit depends on contributions and time, not only future price

Apartment reconstruction can look attractive if you focus only on the expected post-completion price. A better first check adds the current price, additional contribution, and the time until completion. This calculator estimates net profit, ROI, and annualized return in a simplified model.

Calculation basis

Total investment

Current apartment price + additional contribution.

Net profit and ROI

Expected post-reconstruction price - total investment; ROI = net profit ÷ total investment × 100.

Annual return

Annualizes expected price over total investment using the longer of holding period and completion period.

How to use

  1. Enter current price, expected post-reconstruction price, and additional contribution.
  2. Enter holding period and expected years until completion.
  3. Review ROI and annualized return, then adjust separately for taxes, relocation, financing, and delay risk.

Frequently asked questions

Are taxes and transaction costs included?

No. Acquisition tax, capital gains tax, property taxes, broker fees, relocation costs, and financing costs need separate review.

How should I estimate the future price?

Use nearby new-build transactions, same-neighborhood supply, and association materials, while treating future price as uncertain.

Why is annual return sensitive to timing?

Redevelopment can be delayed by approvals, association decisions, relocation, construction, or market cycles. Longer time lowers annualized return for the same profit.

This tool is a general estimate. Confirm actual redevelopment feasibility, taxes, and investment decisions with the relevant institution or professional.