Fix and Flip Profit Calculator
Estimate your net profit on a house-flipping project after purchase, renovation, holding costs, and selling expenses. Use it before making an offer to confirm the deal meets your minimum return threshold.
About this calculator
Fix-and-flip profit is calculated by subtracting all costs from the net sale proceeds. The formula used here is: Profit = Expected Sale Price × (1 − Selling Costs%) − Purchase Price − Rehab Budget − (Holding Time × $1,000). Selling costs (agent commissions, transfer taxes, closing fees) typically run 6–10% of the sale price and are applied as a percentage reduction to gross proceeds. Holding costs—mortgage interest, insurance, utilities, and property taxes—are approximated at $1,000 per month of ownership. This model captures the four major cost buckets every flipper faces: acquisition, renovation, carrying costs, and disposition. Maximizing profit means compressing each bucket: negotiating a lower purchase price, controlling rehab scope, selling quickly, and minimizing agent fees where possible.
How to use
You purchase a home for $120,000, budget $35,000 for rehab, and expect to sell for $210,000 in 4 months. Selling costs are 8%. Profit = $210,000 × (1 − 0.08) − $120,000 − $35,000 − (4 × $1,000) = $193,200 − $120,000 − $35,000 − $4,000 = $34,200. That's a $34,200 net profit on roughly $155,000 total cash deployed—about a 22% return. Enter your own numbers to see whether your deal clears your target profit margin before you commit.
Frequently asked questions
What is a good profit margin for a fix-and-flip investment?
Most experienced flippers target a minimum net profit of $20,000–$25,000 per deal or a return on investment of at least 15–20% on total costs. In competitive markets with higher price points, a 10% net margin on the sale price can still be acceptable if deal volume is high. The 70% rule—paying no more than 70% of ARV minus repair costs—is a common shorthand for ensuring an adequate profit buffer. Always stress-test your numbers against cost overruns and a lower-than-expected sale price.
How do holding costs affect fix-and-flip profitability?
Holding costs are often underestimated but can significantly erode profit on a slow flip. Every additional month adds loan interest (typically 8–12% annualized on hard money), insurance, utilities, and property taxes. On a $150,000 hard money loan at 10%, that's $1,250 per month in interest alone. Delays in permitting, contractor scheduling, or a slow sales market can easily add 2–3 months and $3,000–$5,000 in unexpected costs, making a fast, well-managed rehab one of the most important profit levers.
What selling costs should I include when calculating fix-and-flip profit?
Selling costs typically include the buyer's agent commission (2.5–3%), listing agent commission (2.5–3%), title and escrow fees (0.5–1%), transfer taxes (varies by state), and any seller concessions negotiated during the sale. Together these commonly total 7–10% of the sale price. Some flippers sell to cash buyers or iBuyers to reduce commission costs, though they may accept a lower sale price in return. Always budget conservatively—using 8–9% is a prudent assumption when running preliminary deal analysis.