Fix and Flip Profit Calculator
Calculates the ROI and net profit on a house-flipping project after accounting for purchase price, renovation, carrying costs, and selling fees. Use it before making an offer to verify a deal meets your return threshold.
About this calculator
Fix-and-flip ROI measures how efficiently your invested capital generates profit on a single project. Total Costs = Purchase Price + Renovation Cost + (Monthly Carrying Costs × Holding Time) + (Sale Price × Selling Costs%). Net Profit = Sale Price − Total Costs. ROI = (Net Profit / (Purchase Price + Renovation Cost)) × 100. Carrying costs include loan interest, insurance, utilities, and property taxes accruing during the hold period. Selling costs typically cover agent commissions (5–6%) and closing costs. The denominator uses only purchase price plus renovation to reflect the capital you directly deployed — this is the standard investor convention for fix-and-flip ROI. A typical target ROI is 15–20% or higher to justify the risk and effort involved.
How to use
You purchase a house for $150,000, spend $40,000 on renovation, and expect to sell for $230,000 in 6 months. Monthly carrying costs are $1,200 (hard money loan interest + insurance). Selling costs are 7%. Total costs = $150,000 + $40,000 + ($1,200 × 6) + ($230,000 × 0.07) = $150,000 + $40,000 + $7,200 + $16,100 = $213,300. Profit = $230,000 − $213,300 = $16,700. Total investment = $150,000 + $40,000 = $190,000. ROI = ($16,700 / $190,000) × 100 ≈ 8.79%. This is below most investors' 15% threshold — time to renegotiate the purchase price.
Frequently asked questions
What is a good ROI for a fix and flip project?
Most experienced house flippers target a minimum ROI of 15–20% on their invested capital per project. Some investors use a dollar-profit floor instead, requiring at least $25,000–$30,000 in net profit to justify the time and risk. The right threshold depends on your local market, financing costs, and how quickly you can turn projects. In competitive markets with thin margins, even a 10% ROI may be acceptable if your volume is high and execution risk is low.
How do carrying costs affect fix and flip profitability?
Carrying costs are one of the most commonly underestimated expenses in house flipping. At $1,500/month in holding costs, a project that runs 3 months over schedule costs an extra $4,500 — directly eroding profit. Hard money loan interest, property insurance, utilities, and HOA fees all accumulate daily. Experienced flippers aggressively manage timelines and build a buffer of 1–2 extra months into their estimates. Reducing your hold period is often the fastest way to improve your flip ROI without changing the purchase or sale price.
What selling costs should I include when calculating fix and flip profit?
Selling costs typically total 7–10% of the sale price. This includes a buyer's agent commission (2.5–3%), listing agent commission (2.5–3%), closing costs (1–2%), and any seller concessions or home warranty obligations. Transfer taxes and title fees vary by state and can add another 0.5–1%. Many new flippers forget to budget for these, overestimating their profit by tens of thousands of dollars. Always model selling costs as a percentage of the expected sale price, not a flat fee.