Free tool

House flipping profit calculator

Enter an after-repair value, a purchase price, a rehab budget, and how many months you expect to own the house. The page returns buyer closing, seller closing, holding, total investment, net proceeds, profit, and ROI. The arithmetic is the flip projection from the deal report. It runs in the browser. Nothing you type is uploaded.

The report fixes holding at 6 months. This form starts at 6 so the first result matches that report. The month count is your input. Editing it does not turn on a second product formula. It only changes how many months the same holding line uses. The projection assumes a cash purchase and a sale at the full ARV. The dollar figures in the written example below are invented so the rounding can be checked by hand. They are not a closed sale.

The formula, written out

Buyer closing equals the purchase price times 0.03, rounded to the nearest dollar. Seller closing equals the after-repair value times 0.06, rounded to the nearest dollar. That seller line stands in for the commission and the other costs of reselling. It is not a second buyer-closing charge. Holding equals the purchase price times 0.005 times the month count, rounded once on the whole product. A separate one-month figure, the purchase price times 0.005 rounded by itself, is only a way to see the rate. When the two versions differ by a dollar, the projection stores the single rounding of the full hold.

Investment equals the purchase price plus rehab plus buyer closing plus holding. Seller closing is not inside investment. It comes off the sale instead. Net proceeds equal the ARV minus seller closing. Profit equals net proceeds minus investment. ROI equals profit divided by investment, multiplied by 1000, rounded to the nearest whole number, then divided by 10. That is one decimal place. If investment is zero, ROI is 0, so an empty purchase does not become a divide-by-zero error.

Rehab is a dollar budget you type. It is not a percent of ARV on this page. The purchase price is also a dollar amount you type. In the report that purchase price is often the maximum allowable offer, and you can build that offer on the MAO calculator. Any other purchase price can go through the same profit lines. A higher purchase raises buyer closing and holding, because both of those lines are percents of the purchase price, and it raises investment by the purchase itself.

An invented worked example

These two checks are invented. They are not a closed sale, not a quote, and not a claim about what a flip usually returns. After-repair value is $200,000. Purchase price is $94,000. Rehab is $40,000. The first check uses 6 months, which is the report default and the default on the form above.

Buyer closing is 3 percent of $94,000, which rounds to $2,820.
Seller closing is 6 percent of $200,000, which is $12,000.
Holding for 6 months is $94,000 times 0.005 times 6, which rounds to $2,820.
Investment is $94,000 + $40,000 + $2,820 + $2,820 = $139,640.
Net proceeds are $200,000 − $12,000 = $188,000.
Profit is $188,000 − $139,640 = $48,360.
ROI is $48,360 / $139,640, which the one-decimal rounding reports as 34.6 percent.

The same inputs at 12 months change only the holding line, because the month count is your input and the other rates stay put. Holding is $94,000 times 0.005 times 12, which rounds to $5,640. Investment is $94,000 + $40,000 + $2,820 + $5,640 = $142,460. Net proceeds stay $188,000, because seller closing still uses the full ARV. Profit is $188,000 − $142,460 = $45,540. ROI is $45,540 / $142,460, which the same rounding reports as 32.0 percent.

Read $48,360 and $45,540 as the profit if every assumption holds: you buy at $94,000, you spend $40,000 and not a dollar more, you pay cash, you sell at the full $200,000, and you own the house for the month count in that check. A sale below the ARV, or a rehab overrun, comes straight out of profit. The projection does not add a cushion on top of the numbers you gave it.

The offer cushion is not this holding line

The 3 percent of ARV inside the offer is not the monthly holding line. On this invented example that offer cushion is $6,000, and it is already inside the $94,000 purchase price. The price is lower because the offer formula set money aside before it would name a purchase price. This calculator then estimates carry a different way: 0.5 percent of the purchase price for each month you type, which is $2,820 at 6 months and $5,640 at 12 months. Those are the holding dollars added into investment.

The two lines do different jobs, and this page does not restate the long version of that distinction. The fix and flip profit guide is the place that separates the cushion inside the offer from the monthly line in the projection. The holding-cost guide says which bills the flat monthly percent is standing in for, and how to compare that percent with a list of taxes, insurance, utilities, and similar carry.

What these lines leave out

Interest and points are outside this projection. The 0.5 percent monthly line is a stand-in for taxes, insurance, utilities, and similar carry. It is not debt service. A point charged at the loan table is not inside the 3 percent buyer-closing line either. If the purchase is financed, the cash profit on this page is high until those costs are added on their own lines. The hard money interest guide places a published interest preset next to the cash flip on this same invented example.

The sale price in net proceeds is the full ARV you typed, not a discount for days on market and not a second opinion of value. Buyer closing stays a flat 3 percent of the purchase price. Seller closing stays a flat 6 percent of ARV. Neither field is editable here, because those rates are the projection. What you can change is the ARV, the purchase price, the rehab budget, and your month count.

Questions

What formula does this house flipping calculator use?

Buyer closing is the purchase price times 0.03, rounded to the nearest dollar. Seller closing is the ARV times 0.06, rounded to the nearest dollar. Holding is the purchase price times 0.005 times the month count, rounded once. Investment is purchase plus rehab plus buyer closing plus holding. Net proceeds are ARV minus seller closing. Profit is net proceeds minus investment. ROI is round(profit / investment × 1000) / 10 when investment is above zero, and 0 when it is not.

Is the month count a second formula?

No. The report fixes holding at 6 months. The month field on this page is your input. Changing it only changes how many months go into the same holding line. It does not switch the page to a different product formula.

Does this page upload the numbers I type?

No. The arithmetic runs in the browser on this page. Changing a field only updates the totals you see here. Nothing you type is uploaded.

Why is the offer cushion of $6,000 absent from the holding line?

On the invented example, 3 percent of the $200,000 ARV is $6,000. That cushion is already inside the $94,000 purchase price from the offer formula. The 3 percent of ARV inside the offer is not the monthly holding line. This page holds the house at 0.5 percent of the purchase price per month.

Does the profit include loan interest or lender points?

No. Interest and points are outside this projection. The lines assume a cash purchase and a sale at the full ARV. Financing costs belong on their own lines.

Where to go next

Build the purchase price on the MAO calculator before you drop it into the form above.
Read the fix and flip profit guide for the offer cushion and the monthly holding line.
Read the holding-cost guide before you treat the monthly percent as a finished bill.

Open the sample analysis after you sign up. The sample uses invented figures, the same way the $200,000 example on this page is invented.