Estimate profit and investment returns for real estate flips
Acquisition & Rehab
Typically 2-5% of purchase price
Holding & Sale
Utilities, insurance, loan interest, taxes
Agent fees + closing costs (usually 6-10%)
Total Investment
$0
Net Profit
$0
ROI
0%
Breakdown:
Total Holding Costs:$0
Selling Expenses:$0
Total Cost Basis:$0
function calculateFlip() {
// Get input values
var purchase = parseFloat(document.getElementById('purchasePrice').value) || 0;
var rehab = parseFloat(document.getElementById('repairCosts').value) || 0;
var closingBuy = parseFloat(document.getElementById('closingCostsBuy').value) || 0;
var sellingPrice = parseFloat(document.getElementById('arv').value) || 0;
var monthlyHold = parseFloat(document.getElementById('monthlyHolding').value) || 0;
var months = parseFloat(document.getElementById('monthsHeld').value) || 0;
var commissionRate = parseFloat(document.getElementById('agentCommission').value) || 0;
// Calculations
var totalHoldingCosts = monthlyHold * months;
var sellingExpenses = sellingPrice * (commissionRate / 100);
// Total Cash Invested (Cost Basis)
var totalInvestment = purchase + rehab + closingBuy + totalHoldingCosts + sellingExpenses;
// Net Profit
var netProfit = sellingPrice – totalInvestment;
// ROI Calculation: (Net Profit / Total Costs) * 100
// Note: Some investors calculate ROI based on "Cash Invested" (down payment + repairs),
// but for a general flip calc, return on total project cost is often used to measure project efficiency.
// Here we use Return on Total Cost.
var roi = 0;
if (totalInvestment > 0) {
roi = (netProfit / totalInvestment) * 100;
}
// Formatting currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 0,
maximumFractionDigits: 0,
});
// Update DOM
document.getElementById('totalInvestedDisplay').innerHTML = formatter.format(totalInvestment);
document.getElementById('netProfitDisplay').innerHTML = formatter.format(netProfit);
document.getElementById('roiDisplay').innerHTML = roi.toFixed(2) + '%';
document.getElementById('displayHolding').innerHTML = formatter.format(totalHoldingCosts);
document.getElementById('displaySellingExp').innerHTML = formatter.format(sellingExpenses);
document.getElementById('displayCostBasis').innerHTML = formatter.format(totalInvestment);
// Color coding for profit
var profitDiv = document.getElementById('netProfitDisplay');
if (netProfit < 0) {
profitDiv.style.color = '#c0392b'; // Red
} else {
profitDiv.style.color = '#27ae60'; // Green
}
// Show result
document.getElementById('resultSection').style.display = 'block';
}
Understanding House Flipping ROI
Calculating the Return on Investment (ROI) for a house flip is critical for real estate investors to ensure a project is worth the risk and effort. Unlike a simple buy-and-hold strategy, flipping involves complex variables including renovation costs, holding periods, and transaction fees that can quickly eat into profit margins.
The 70% Rule in Real Estate
Many experienced flippers use the 70% Rule as a quick screening tool. This rule suggests that an investor should pay no more than 70% of the After Repair Value (ARV) of a property minus the repairs needed.
Formula: (ARV × 0.70) – Repairs = Maximum Purchase Price
While our calculator above provides a detailed breakdown, keeping the 70% rule in mind helps ensure you build enough margin to cover unforeseen costs.
Key Metrics Defined
ARV (After Repair Value): The estimated value of the property once all renovations are complete. This is arguably the most important number in your calculation.
Holding Costs: These are often overlooked by beginners. They include property taxes, insurance, utilities, and most importantly, the interest payments on hard money loans or lines of credit during the renovation period.
Selling Costs: When you sell the flipped home, you typically pay for both the buyer's and seller's agent commissions (often 5-6% total), plus transfer taxes and closing fees.
What is a Good ROI for Flipping Houses?
While every investor has different goals, a common benchmark for a successful flip is an ROI of 15% to 20% or higher. However, because flipping carries significant risk (market downturns, unexpected structural issues), many investors aim for a net profit of at least $25,000 to $30,000 per deal to justify the time commitment.