Fix-and-flip calculator
Add up every cost of a flip, from hard-money interest to agent commissions, and see your profit and return.
Profit
$38,710
ROI
74.39%
Annualized ROI
204.10%
- Cash invested
- $52,040
- Loan amount
- $258,000
- Holding costs
- $4,400
- Loan interest
- $15,480
- Points
- $5,160
- Selling costs
- $26,250
- Total project cost
- $336,290
How this is calculated
- 1Loan = purchase price × loan % of purchase + rehab × loan % of rehab.
- 2Holding costs = (property tax ÷ 12 + insurance ÷ 12 + utilities + other) × months held.
- 3Financing costs = loan × rate ÷ 12 × months (interest-only) + loan × points %.
- 4Selling costs = sale price × (commissions % + seller closing %).
- 5Profit = sale price − (purchase + closing + rehab + holding + financing + selling costs).
- 6ROI = profit ÷ cash invested, where cash invested = purchase + closing + rehab − loan + holding + financing costs. Annualized ROI = (1 + ROI)12 ÷ months − 1.
Not included: income taxes on the profit. Flip profits are usually taxed as ordinary income.
Frequently asked questions
- What are points on a flip loan?
- Up-front fees charged as a percentage of the loan. One point is 1% of the loan amount. Hard-money lenders commonly charge one to three points plus interest.
- How many months should I assume for a flip?
- Count the whole time you own it: closing, the rehab, listing, finding a buyer and closing the sale. Rehabs often run long, so add a month or two of cushion.
- Does the profit include my own labor?
- No. If you do work yourself, the profit includes the value of that work. Many flippers enter what they'd pay a contractor so they can see whether the deal works without their own labor.
- Which selling costs should I include?
- Agent commissions (negotiable), the seller's closing costs, transfer taxes where your state charges them, and any concessions or repairs you agree to after the buyer's inspection.
- Why show annualized ROI as well as ROI?
- A 20% return in four months is much better than 20% in a year. Annualized ROI lets you compare flips of different lengths, and compare a flip with other investments.