House Flipping Calculator
Calculate profit, ROI, and break-even price on a house flip including all purchase, renovation, and selling costs.
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How to use this calculator
- 1
Enter the purchase price and estimated renovation cost.
- 2
Set your monthly holding costs and how many months you expect to hold the property.
- 3
Enter the expected after-repair value (ARV) as the selling price.
- 4
Add agent commission and closing cost percentages to see your net profit and ROI.
Frequently asked questions
What formula does this tool use for flip profit?
This tool uses net profit = selling price − agent commission − selling closing costs − total investment, where total investment is purchase price + buying closing costs + renovation + (monthly holding cost × holding months). Commission and both closing-cost items are percentages: the buying one applies to the purchase price, the other two to the selling price.
How are ROI and annualised ROI defined here?
ROI is net profit divided by total investment (purchase, buying closing, renovation and holding costs), not divided by the cash you personally put in. Annualised ROI is simple scaling: ROI × 12 ÷ holding months. It is not compounded, and if holding months is zero it simply repeats the ROI figure.
What does the break-even selling price mean?
It is total investment ÷ (1 − commission % − selling closing %), the sale price at which net profit is exactly zero after those two selling percentages come off. With the defaults it is $282,796 against a $300,000 expected price. If the two percentages add up to 100 or more, no price can break even and the tool shows $0.
What does “Total costs (all in)” include?
It is total investment plus the commission and the selling closing costs, so every cost the tool knows about. Subtracting it from the selling price gives the same net profit, which is a quick way to check the result.
Which costs are not modelled?
There is no loan principal, loan fees or interest calculation: financing only enters through the monthly holding figure you type in. Income tax on the profit, a renovation contingency, permits that are not in your renovation figure, and capital-gains treatment are also absent. A flip that needs a contingency has to have it added to the renovation input.
What should go into monthly holding costs?
Whatever you pay each month while you own the property and before it sells: loan payments or interest, property tax, insurance, utilities and similar items. The tool multiplies the number by the holding months and does not break it down, so a one-off charge is best spread across the months.
What happens when the sale loses money?
The profit shows with a minus sign and ROI and annualised ROI turn negative. A negative annualised figure is just the negative ROI scaled by 12 ÷ months, so a short, losing flip can look worse annualised than it does in total.
What happens with a zero or cleared field?
A cleared number box counts as 0, the same as typing 0, and the default shown on the form is not restored. Entering 0 renovation, 0 commission or 0 holding months really does remove that item. Negative numbers are treated as zero.
Flip profit: from after-repair value to what is left
How the profit line is built
Every figure comes from two totals. The first is total investment: the purchase price, the buying closing costs as a percentage of that price, the renovation budget, and the holding cost per month multiplied by the number of months. The second is net sale proceeds: the selling price less the agent commission and the selling closing costs, both taken as percentages of the selling price. Profit is the second minus the first. With the form defaults (a $200,000 purchase, $50,000 of renovation, six months at $1,500, and a $300,000 sale) investment is $263,000 and profit is $16,000.
Worked example: the same house held six months and twelve
Holding time is the cheapest input to test. Keeping every default but doubling the hold to twelve months raises investment from $263,000 to $272,000, because six extra months of the $1,500 holding cost add $9,000. Profit falls from $16,000 to $7,000, ROI from 6.1% to 2.6%, and the annualised figure from 12.2% to 2.6%. The break-even sale price moves from $282,796 to $292,473, so a longer hold leaves much less room between the price you hope for and the price that merely recovers your costs.
Worked example: when the after-repair value comes in low
The expected selling price is the least certain input, and the sale percentages scale with it. If the same house sells for $260,000 instead of $300,000, with the six-month hold, the tool shows a loss of $21,200, ROI of −8.1% and annualised ROI of −16.1%. At $280,000 with a nine-month hold, the loss is $7,100. Because the break-even price is $282,796 at six months and $287,634 at nine, both of those prices sit below the line.
| Scenario | Net profit | ROI | Annualised ROI | Break-even price |
|---|---|---|---|---|
| 6 months, sells at $300,000 | $16,000 | 6.1% | 12.2% | $282,796 |
| 12 months, sells at $300,000 | $7,000 | 2.6% | 2.6% | $292,473 |
| 9 months, sells at $280,000 | -$7,100 | -2.7% | -3.5% | $287,634 |
| 6 months, sells at $260,000 | -$21,200 | -8.1% | -16.1% | $282,796 |
Reading annualised ROI correctly
Annualised ROI here multiplies ROI by 12 and divides by the holding months, so a 6.1% return over six months becomes 12.2%. That is a straight-line scaling and does not assume you can repeat the flip back to back with the same result. Use it to compare two flips of different length on equal terms, and keep in mind that it divides profit by total costs rather than by the cash you actually put in, which matters if a lender funds part of the purchase.
What you still have to add yourself
The calculator has no separate line for loan interest, income tax on the gain, or a buffer for renovation overruns. If your costs include a loan, fold its interest into the monthly holding figure; if you want a contingency, raise the renovation input before reading the result. Treat every output as an estimate that is only as good as the after-repair value and budget you typed in.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →