How to Use the House Flipping Calculator
Enter the purchase price, expected sale price or ARV, renovation costs, buying costs, financing details, holding costs, selling costs, and contingency. Realtolic will automatically estimate total project cost, sale proceeds, flip profit, ROI, cash invested, and break-even sale price.
House Flipping Calculator Example
For example, suppose you buy a property for $250,000, spend $40,000 on renovations, and expect to sell it for $375,000. After estimated buying costs, financing costs, holding costs, selling costs, and contingency, the project may produce an estimated profit of about $41,600.
How Is House Flipping Profit Calculated?
House flipping profit is calculated by subtracting the total project cost and selling costs from the expected sale price. Total project cost can include the purchase price, renovation costs, buying costs, financing costs, holding costs, and other project expenses.
What Costs Should You Include in a House Flip?
Common costs include the purchase price, closing costs, renovation and repair costs, loan interest, loan fees or points, property taxes, insurance, utilities, other holding costs, real estate agent commissions, selling costs, and contingency expenses.
What Is a Good ROI on a House Flip?
There is no single ROI that is good for every house flip. Profitability depends on purchase price, renovation risk, financing costs, project length, local market conditions, and the final sale price. Investors should review both expected profit and the risks involved.
House Flipping Calculator FAQs
What does ARV mean?
ARV means After Repair Value, which is the estimated market value of the property after renovations are completed.
What is a break-even sale price?
The break-even sale price is the estimated minimum sale price needed to cover project costs and selling expenses without producing a profit or loss.
Do holding costs affect flip profit?
Yes. Longer project timelines can increase taxes, insurance, utilities, interest, and other holding costs, which can reduce profit.
