How it works
A house flip earns the difference between realized sale proceeds and the full project cost. The model groups acquisition, renovation, carrying and selling costs so that the budget is visible.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
$180,000 purchase + $7,000 acquisition + $55,000 rehab + $18,000 financing/holding + $26,000 selling costs total $286,000. A $325,000 sale leaves $39,000 profit and 12.00% margin.
Calculation method
Optional contingency applies to rehab. Enter a total financing/holding cost or use monthly holding cost multiplied by months plus one-time financing charges. Percentage selling fees are solved algebraically in the break-even price.
Interpretation
Profit margin divides profit by sale proceeds; cash ROI divides it by actual cash invested. Borrowed principal is not another project expense on top of purchase and rehab. Interest is a cost; loan payoff and equity funding are financing movements.
Limitations
All rents, values, vacancy, expenses and financing terms are your assumptions. Figures exclude income tax and appreciation. Inputs stay in your browser. These calculations do not predict loan approval or investment outcomes.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- CFPB — How lenders calculate mortgage paymentsLoan principal-and-interest context; property operating expenses and underwriting assumptions are separate.
Frequently asked questions
How can a longer holding period change flip profit?
It can increase financing and recurring holding costs. Test longer periods as well as lower sale prices; selling price alone does not describe project risk.
What is a worked example for House Flip Profit?
$180,000 purchase + $7,000 acquisition + $55,000 rehab + $18,000 financing/holding + $26,000 selling costs total $286,000. A $325,000 sale leaves $39,000 profit and 12.00% margin.