Replacing windows is a valuable investment for any homeowner, especially considering windows are responsible for up to 35% of your home’s heating and cooling efficiency, according to Energy.gov. Getting new windows can save you money on energy costs, add value to your home, and reduce maintenance requirements. Read our guide to learn about new windows’ return on investment (ROI) and how they can increase home value.

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Factors That Impact Window Replacement ROI

Window replacement can yield an impressive ROI. Below are the biggest determining factors:

Energy Efficiency

New windows with airtight designs can help you reduce gaps common in old windows. These gaps allow air to leak in and out of your home. By preventing these leaks, you can enjoy lower energy consumption, which may reduce your bills by as much as 13%. This can greatly improve new windows’ ROI.

The main energy-efficient features to seek in new windows are:

• Low-e coatings: Low-emissivity (low-e) coatings are thin, transparent layers attached to the glass. They reduce the amount of UV and infrared light that passes through your windows. 
• Inert gas fills: The space between panes in multiple-pane windows can be filled with inert gasses, such as argon or krypton. These gasses reduce heat transfer and improve the window’s energy performance.
• Multiple panes: Double- or triple-pane windows provide better insulation than single-pane windows. The additional layers of glass reduce heat transfer.
• Quality frame materials: Energy-efficient windows have frames made of vinyl or fiberglass, which provide better insulation than traditional aluminum.

Working with the best window installation companies is key to maximizing energy efficiency for your new windows. Even the most expensive and efficient windows may not function correctly if you improperly install them.

Maintenance and Durability

Many old windows, especially those with wooden frames, need regular painting and sealing to protect against rot and insect damage. New vinyl, fiberglass, or aluminum windows require much less maintenance.

These materials are durable and long-lasting. Even without extensive maintenance, the best vinyl windows can last between 20 and 40 years. Meanwhile, fiberglass windows can stay in good shape for over 50 years.

Invest in the materials below to minimize a window’s maintenance requirements and increase its durability:

• High-quality seals and hardware: Modern windows feature advanced seals and durable hardware, preventing air and water from entering. These components reduce wear and tear and extend the window’s lifespan.
• Tilt-in sashes: Tilt-in sashes allow you to clean your glass exterior from inside the house. This feature eliminates the need for ladders or professional cleaning services.

Investing in these materials and features will increase your window project’s ROI.

Home Value

Aesthetically appealing windows can make your property more attractive to a potential buyer, and lower energy bills are enticements. 

You can expect to recoup approximately 60%–70% of your window replacement costs when selling your home, according to Remodeling’s Cost vs. Value Report. Energy savings, aesthetic appeal, and potential resale value substantially increase new windows’ ROI.

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Types of Replacement Windows

The best types of windows for a favorable return on investment are below. 

Bay and Bow Windows

Bay windows extend outward from the home, consisting of two smaller windows flanking a larger third window. Bow windows have a similar design but include four or more panels that create a curved structure.

These windows increase interior space, provide panoramic views, and add architectural interest to the home. They also enhance natural light and ventilation. Both bay and bow windows add curb appeal and increase the resale value of your home.

Casement Windows

Casement windows have hinges on one side of the window and open outward. You can operate casement windows with a crank, clean them from the inside, and enjoy the benefits of their excellent ventilation. They also seal tightly, which improves their energy efficiency. 

These windows increase your ROI by lowering energy bills and simplifying maintenance tasks.

Double-Hung Windows

Double-hung windows have two sliding vertical sashes, and the top and bottom halves both open. These windows are easy to clean, especially if they have tilt-in sashes. The ease of maintenance can increase your property value.

Picture Windows

Picture windows are large, fixed-pane windows that do not open. They’re designed to frame outdoor views like a picture. These windows allow maximum natural light to enter your home and offer excellent energy efficiency.

Picture windows’ energy efficiency and aesthetic appeal increase any home’s value. Even the lack of ventilation doesn’t negatively affect their ROI.

Sliding Windows

Sliding windows have one or more panels that slide horizontally on tracks. These windows are easy to operate and provide plenty of natural light and ventilation. They are great for homes in which vertical space is limited. These windows’ modern appearance and practicality make for a positive ROI. They are also easy to clean and maintain from the inside.

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Importance of Proper Window Installation

You must properly install windows to reap their benefits, no matter how energy-efficient and durable. Poor window installation can lead to the following:

• Air leaks
• Damage
• Reduced energy efficiency
• Rot
• Water infiltration

Homeowners should consider professional installation even if they have experience with installing windows. Professional installers have the necessary expertise and know how to comply with relevant building codes. This will keep you from voiding your windows’ warranties. 

Improper installation directly impacts your replacement window’s ROI, and poorly installed windows can cause unexpected expenses.

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Calculating the ROI of New Windows

Consider the following factors when calculating the ROI of a window replacement project.

Cost of Windows and Installation

Estimate the total cost of purchasing and installing new windows. For example, window replacement costs in a small home are around $6,000.

Expected Energy Savings

Approximate the annual energy savings new windows can offer you. For example, if you replace single-pane windows with double-pane windows, you can save up to 13% on energy bills, which could be around $500 per year.

Increased Home Value

Calculate how much new windows will increase your home value. For example, if you’re installing vinyl windows and adding around $14,000 to your home’s value, consider the following metrics: 

• Annual energy savings: $500
• Increase in home value: $14,000
• Total Investment: $15,000 (windows + installation)*

*Figure calculated via Angi.com

ROI Calculation

Total savings over 10 years: $5,000 (energy savings) + $14,000 (home value increase) = $19,000.

ROI = $19,000 (savings) – $6,000 (initial investment)/$15,000 (initial investment) x 100 = 86.7%.

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Our Conclusion

New windows can help reduce electricity bills, make your home more comfortable, and increase your property’s resale value. They can also decrease maintenance costs and make your home more aesthetically appealing. You can improve your new windows’ ROI by investing in the right materials, features, and high-quality installation. Review your current energy use, assess your needs, and consider your budget before moving forward with an installation project.

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FAQ About ROI on New Windows

Are there any tax credits or incentives available for energy-efficient windows?

There are tax credits available for energy-efficient windows, such as the 25C Federal Tax Credit for installing exterior residential windows or skylights that meet the Energy Star Most Efficient criteria.

Can I install new windows myself to save money?

Yes, you can install new windows yourself to save money. However, without experience and professional equipment, you may make mistakes that affect the energy efficiency of your windows. You may also void the window’s warranty.

How long do new windows typically last?

New windows can last between 10 and 50 years, or even a bit longer. Their lifespan depends on materials, window styles, installation quality, and maintenance. Cheap window replacement projects usually mean shorter lifespans.

How much can I expect to save on energy bills with new windows?

You can expect to save up to 13% on energy bills with new windows, but only if you choose the right frame materials, features, and installation company.

What is the average ROI for a window replacement project?

The average ROI of a window upgrade project depends on the initial investment in new windows and the annual savings they yield. For many homeowners, it can be between 70% and 80%.

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