Calculate your fix-and-flip profit by subtracting purchase, rehab, holding, selling, and financing costs from the after-repair value (ARV).
Flipping houses can be highly profitable, but the margins depend on accurately estimating every cost category before you make an offer. The fix-and-flip profit equation is deceptively simple: Profit = ARV minus all costs. But "all costs" includes purchase price, rehab, holding costs, selling costs, and financing — and underestimating any one of them can turn a projected $50,000 profit into a $10,000 loss.
This calculator itemizes every major cost component of a flip and subtracts them from your projected after-repair value (ARV). It shows your gross profit, net profit after all costs, return on investment, and profit margin. Use it to evaluate deals before making offers, compare multiple flip opportunities, and stress-test your assumptions by adjusting rehab budgets or hold times.
Experienced flippers run these numbers on every deal. This tool automates the math so you can focus on finding and executing profitable flips.
Homebuyers, investors, and real-estate professionals all benefit from precise fix and flip profit figures when evaluating properties, negotiating deals, or planning long-term investment strategies. Save this calculator and revisit it whenever market conditions or your financial situation changes.
Most failed flips fail because of inaccurate cost estimates, not bad properties. This calculator forces you to account for every expense category, reducing the chance of surprises that eat your profit. It also calculates ROI so you can compare flipping returns to other investment options. Instant recalculation lets you compare scenarios side by side, so every buying, selling, or investment decision is grounded in solid financial analysis.
Total Costs = Purchase + Rehab + Holding + Selling + Financing Gross Profit = ARV − Purchase − Rehab Net Profit = ARV − Total Costs ROI = Net Profit / Total Cash Invested × 100 Profit Margin = Net Profit / ARV × 100
Result: Net profit = $45,500 | ROI = 54.2%
With an ARV of $350,000, purchase at $200,000, $60,000 rehab, $12,000 holding costs, $24,500 selling costs (7% of ARV), and $8,000 financing, total costs are $304,500. Net profit is $350,000 − $304,500 = $45,500. If total cash invested was $84,000 (down payment + rehab), ROI is 54.2%.
A successful flip requires accurate accounting across five cost categories: acquisition, renovation, holding, selling, and financing. Acquisition includes the purchase price plus closing costs. Renovation covers all labor and materials. Holding costs are the monthly expenses during the rehab and sale period. Selling costs include agent commissions, transfer taxes, and buyer concessions. Financing covers loan interest, points, and fees.
The three most common reasons flips lose money are over-paying for the property, underestimating rehab scope, and holding too long. Scope creep during renovation is particularly dangerous — once you open walls, you often find plumbing, electrical, or structural issues that weren't in the original estimate. Always budget a contingency reserve.
The best flippers buy right. Getting a property at 65–70% of ARV minus repairs leaves enough margin to absorb surprises and still profit. They also minimize hold time by having contractors lined up before closing and listing the property as soon as the last coat of paint dries.
Most experienced flippers target a minimum 10–15% net profit margin (net profit / ARV). On a $300,000 ARV property, that's $30,000–$45,000. Higher-risk flips or longer timelines should demand higher margins to compensate for uncertainty.
Holding costs and selling costs are the two most commonly underestimated categories. Flippers focus on rehab and forget that carrying a property for 6 months while paying a mortgage, taxes, insurance, and utilities can cost $10,000–20,000. Selling costs (commissions + closing) typically run 8–10% of the sale price.
Yes, if you're managing the flip yourself, assign an hourly value to your time. If you spend 200 hours managing a flip that nets $40,000, your effective hourly rate is $200/hr. Compare that to your regular income to determine if flipping is worth your time.
Pull 3–5 comparable sales of renovated properties within 0.5 miles and sold within the last 6 months. Adjust for differences in size, bedrooms, and finishes. Use our ARV Estimator calculator for a structured approach.
Gross profit is ARV minus purchase and rehab only. Net profit subtracts all costs including holding, selling, and financing. Always make decisions based on net profit — gross profit overstates reality by 30–50% on most flips.
Include loan origination fees (1–3 points on the loan amount), monthly interest payments (hard money runs 10—14%), appraisal fees, and any other lender charges. Use our Hard Money Loan Calculator for detailed financing cost analysis.