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Analyze house flip profit from purchase, rehab, and ARV. Calculate holding costs, closing fees, and net profit margin for fix-and-flip real estate deals.
Calculate Return on Investment. Gain divided by cost. Get ROI percentage and net profit. Essential for business decisions.
Free mortgage calculator for monthly payment, total interest, and amortization. Compare 15- vs 30-year home loans with down payment and rate inputs.
Net profit equals the after-repair value minus all costs incurred from purchase through sale. Include every line item — missing holding costs or selling commissions is the most common reason flips underperform projections.
Net Profit = ARV − (Purchase Price + Rehab + Holding Costs + Selling Costs + Closing Costs)Experienced flippers limit maximum offer to 70% of ARV minus estimated rehab costs. This built-in margin covers holding costs, selling fees, and unexpected overruns while targeting 15–20% ROI.
Max Offer = (ARV × 0.70) − Rehab BudgetFlip ROI is net profit divided by total cash invested (down payment, rehab, and holding costs). Lenders and private money partners typically expect 15–25% ROI on a 4–6 month hold.
ROI = Net Profit / Total Cash Invested × 100Updated: July 2026
3-bed ranch purchased below market, moderate cosmetic rehab, 5-month hold.
→ Net profit: ~$38,800 | ROI: ~17%
Distressed property requiring structural and systems work with extended 8-month timeline.
→ Net profit: ~$43,400 | ROI: ~19% on $225K cash invested
Investor overpaid relative to ARV, demonstrating why the 70% rule matters.
→ Net profit: ~$15,100 | ROI: ~6% — likely not worth the risk
Add a 15–20% contingency to every rehab budget. Hidden issues behind walls, outdated electrical, and permit delays routinely push budgets over. Track costs weekly against budget.
Include property taxes, insurance, utilities, lawn care, and hard money interest. On a $250K loan at 12% interest, carrying costs alone exceed $2,500/month before any other expenses.
Base ARV on sold comps within 0.5 miles and 90 days, adjusting for condition and square footage. Overpricing ARV by $20K can turn a profitable flip into a break-even or loss.
Model the full profit picture on a fix-and-flip deal by accounting for acquisition, rehab, holding, and disposition costs. Professional flippers use this analysis to enforce the 70% rule and ensure projected returns justify the capital and timeline risk.