Fix & Flip Profit Calculator
Analyze the profitability of a flip by accounting for all hidden costs.
How This Tool Works
House flipping is a high-reward, high-risk strategy. The Fix & Flip Profit Calculator helps you estimate your true net profit by accounting for all costs—not just the purchase and renovation, but also the "hidden" holding and selling costs that often surprise new investors.
The 4 Profit Killers
- Purchase Price: The acquisition cost.
- Renovation (Rehab): Materials, labor, and permits.
- Holding Costs: Loan interest, taxes, insurance, and utilities paid monthly while you own the property. Speed is money!
- Selling Costs: Agent commissions (typically 5-6%) and closing fees (~2%).
Example Scenario
You buy a house for $150,000 and spend $40,000 on rehab. You sell it for $250,000.
- Gross Spread: $60,000 (looks great!)
- BUT: You held it for 4 months costing $4,000 in interest/utilities.
- AND: You paid 8% to sell it ($20,000).
- Net Profit: $60k - $4k - $20k = $36,000.
This calculator ensures you see the $36k real number, not the $60k illusion.
Frequently Asked Questions
What is a good ROI for a house flip?
Most professional flippers aim for a minimum Return on Investment (ROI) of 15-20%. This buffer protects you if the renovation goes over budget or the market cools down.
What are "holding costs"?
Holding costs (or carrying costs) are expenses you pay every month just for owning the property. These include loan interest, property taxes, insurance, and utilities. The longer you hold the property, the more these eat into your profit.
Does this calculator include capital gains tax?
No, this calculator determines pre-tax net profit. Profits from flips are typically taxed as ordinary income (if held less than a year) or capital gains. You should consult a tax professional for your specific liability.