Analyze your real estate investment potential by calculating projected ROI and net profit.
Investment Summary
Total Investment:$0
Total Expenses:$0
Net Profit:$0
Return on Investment (ROI):0%
function calculateFlipProfit() {
var purchasePrice = parseFloat(document.getElementById('purchasePrice').value) || 0;
var repairCosts = parseFloat(document.getElementById('repairCosts').value) || 0;
var arv = parseFloat(document.getElementById('arv').value) || 0;
var sellingPercent = parseFloat(document.getElementById('sellingPercent').value) || 0;
var holdingMonthly = parseFloat(document.getElementById('holdingMonthly').value) || 0;
var flipMonths = parseFloat(document.getElementById('flipMonths').value) || 0;
var totalHoldingCosts = holdingMonthly * flipMonths;
var sellingCosts = arv * (sellingPercent / 100);
// Assuming 2% closing costs on purchase
var closingCosts = purchasePrice * 0.02;
var totalExpenses = repairCosts + totalHoldingCosts + sellingCosts + closingCosts;
var totalInvestment = purchasePrice + repairCosts + totalHoldingCosts + closingCosts;
var netProfit = arv – purchasePrice – totalExpenses;
var roi = (netProfit / totalInvestment) * 100;
document.getElementById('resTotalInvestment').innerText = '$' + totalInvestment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotalExpenses').innerText = '$' + (totalExpenses + purchasePrice – totalInvestment + totalInvestment – purchasePrice).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resNetProfit').innerText = '$' + netProfit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resROI').innerText = roi.toFixed(2) + '%';
document.getElementById('results-area').style.display = 'block';
}
How to Use the Fix and Flip Profit Calculator
Successful real estate investing relies on accurate data. Our Fix and Flip Profit Calculator helps you determine the viability of a property before you sign a contract. By entering the purchase price, estimated renovation costs, and projected After Repair Value (ARV), you can see your potential net profit and Return on Investment (ROI).
Key Metrics Explained
After Repair Value (ARV): This is the estimated market value of the property once all renovations are complete. It is based on comparable sales (comps) in the area.
Holding Costs: These include property taxes, insurance, utilities, and loan interest paid during the time you own the property.
Selling Costs: Don't forget agent commissions (usually 5-6%) and transfer taxes when you sell the property.
ROI (Return on Investment): This percentage shows how much profit you made relative to every dollar you invested in the deal.
The 70% Rule in Real Estate
Many experienced "flippers" follow the 70% rule. This guideline suggests that an investor should pay no more than 70% of the ARV of a property, minus the cost of repairs. For example, if a house's ARV is $400,000 and it needs $50,000 in repairs, the 70% rule suggests a maximum purchase price of $230,000 ($400,000 * 0.70 – $50,000).
Realistic Example Scenario
Let's look at a typical investment breakdown:
Purchase Price
$200,000
Renovation Budget
$60,000
Holding Time
4 Months
After Repair Value
$350,000
Estimated Net Profit
$58,000+
Always include a contingency fund of 10-15% in your repair estimates to account for unexpected issues like structural damage, mold, or plumbing surprises.